To amend the Internal Revenue Code of 1986 to permit qualified distributions from section 529 plans for certain transportation and parking expenses.

This bill would let families use 529 college savings money to pay for getting to school. It adds reasonable transportation and parking costs as “qualified” expenses, as long as they do not exceed the transportation amount in the school’s official cost of attendance. The school sets that amount under federal rules. It also updates the 529 rules related to apprenticeship programs. These changes would apply to withdrawals made after the bill becomes law.

Key points:

• Who is affected: Students and families with 529 plans, and those in qualified apprenticeship programs.
• What changes: 529 funds could cover transportation and parking to the eligible school, up to the school’s transportation allowance in the cost of attendance.
• When: Applies to distributions made after enactment.