Two Michigan congressmen are proposing legislation that would allow families to save even more for their children’s college costs, the Detroit Free Press reports. The bill proposed by U.S. Reps. Tim Walberg, R-Tipton, and Dan Kildee, D-Flint Township, would increase from $2,000 to $10,000 a year the amount families can invest in Coverdell Savings Accounts for higher education. The legislation also allows contributions to continue until the beneficiary is 22 years of age. At present, contributions continue only until the beneficiary is 18. Coverdell accounts are structured so that investment results are tax-free, though taxes are paid on the contributions. The beneficiary does not owe tax on the distributions as long as they are less than his or her qualified expenses for higher education.

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