Rep. Kristi Noem today introduced H.R. 4794, the Investing for Tomorrow Act, which would allow for unborn children to be named as beneficiaries of 529 education savings accounts. If enacted, this would mark the first time unborn children would be explicitly named in the tax code. The provision was included in the House-passed tax reform bill, but was removed due to Senate rules.

“Like so many parents, Bryon and I started dreaming of our children’s future from the moment we found out we were pregnant,” said Noem. “We dreamed of who they’d become, what they’d do, and the kind of people they’d be. With this legislation, parents will finally be able to start investing in that future too.”

529 accounts are tax-advantaged savings plans designed to help families save for future education costs. Through tax reform, 529 accounts were expanded and enhanced, now allowing parents to use the money for elementary, secondary and post-secondary education.  Additionally, tax reform allowed for the money within 529 accounts to be rolled over to ABLE accounts tax free, which are tax-advantaged savings accounts for those with disabilities and their families.

In addition to allowing unborn children to be named as beneficiaries, Noem has cosponsored separate legislation that would allow 529 accounts to be used for homeschool-related expenses. 

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