Senate passes changes to college savings plan

Bill expands college savings plan contributors
Senate passes changes to college savings plan

The Wisconsin Senate has passed a bill that would allow more people to contribute to a student’s state college savings program.

The EdVest program currently allows parents, grandparents, great-grandparents, aunts and uncles to make tax-deductible contributions to accounts used to cover a child’s qualified education costs. The bill passed Wednesday on a unanimous vote would allow anyone, not just family members, to contribute to a child’s account.

The bill would also tie the current tax deduction for making a qualifying investment to the rate of inflation. Under current law, qualifying contributions are eligible for a tax deduction up to $3,000 a year.

The bill now heads to the state Assembly.