Show-Me State Times

U.S. Senator Eric Schmitt (R-MO) announced that his provision to raise the investment cap for 529 education savings plans from $10,000 to $20,000 has been signed into law as part of the One Big Beautiful Bill. The measure is intended to give parents more opportunities to save for their children's education and broaden options for school choice.

“Every child, no matter their zip code or background, deserves a quality education that equips them with the tools and knowledge they need to thrive. By doubling the investment cap for 529 savings plans and giving parents more flexibility, we are expanding school choice and making it easier for families to invest in their children’s success. This is about empowering families and promoting educational freedom, and I am proud to see my commonsense effort signed into law,” said Senator Schmitt.

A 529 plan is a tax-advantaged savings program designed to help families prepare financially for education expenses. It allows tax-free growth on investments and tax-free withdrawals when used for qualified costs like tuition or school supplies. With this new law, families can now contribute up to $20,000 annually toward these expenses.

Additionally, Senator Schmitt highlighted another legislative effort included in recent changes: his ENABLE Act. This act was also signed into law and permits families to transfer funds from a 529 plan into an Achieving a Better Life Experience (ABLE) account permanently if the beneficiary has disabilities.