Toward More Inclusive College Savings Plans: Sample State Legislation

Terry Lassar, Margaret Clancy, Sarah McClure

Saving for post-secondary education is more important than ever. Although participation in college savings plans, frequently called 529 plans, has increased rapidly, low-and moderate-income families are less likely to own a 529 plan account. A number of states have created inclusive 529 policy strategies to make college savings plans more accessible and easier to use for families at all income levels. These strategies include: facilitate enrollment and contributions, remove saving disincentives, increase saving incentives, and strengthen tax benefits. In this report, the Center for Social Development examines these inclusive state policy strategies, describes their application through legislative and administrative means, and points to specific examples. More inclusive 529 policies are a productive strategy for state policymakers to invest in the future of their states.

View the policy report here.

View the policy brief here.