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CBA Letter of Support for S. 2471 - 401 (Kids)
May 26, 2016
Senator Mark Kirk
524 Hart Senate Office Building
Washington, D.C. 20510
Dear Senator Kirk:
On behalf of the Consumer Bankers Association (CBA), I write to express my support for The 401(Kids) Education Savings Account Modernization Act of 2016 (S. 2471). CBA is the voice of the retail banking industry whose products and services provide access to credit for consumers and small businesses. In particular, CBA members offer competitive products available to students and families deciding how to finance higher education. Our members operate in all 50 states, serve more than 150 million Americans, and collectively hold two-thirds of the country’s total depository assets.
For many families, a college education can be one of the most important investments they ever make. Today, 59 percent of American jobs require a postsecondary degree. But with tuition and fees having risen more than 1,100 percent over the last four decades, paying the high cost of college can be a significant burden.
The 401(Kids) Education Savings Account Modernization Act of 2016 would promote savings for educational expenses by reforming Coverdell Education Savings Accounts. By increasing contribution limits, removing eligibility restrictions for contributors, expanding eligible education expenses, and allowing tax-free rollovers into Roth individual retirement accounts, this legislation would increase access to and utilization of this important education savings tool.
On behalf of all our members, thank you for your leadership on this issue. CBA welcomes the opportunity to work with you in passing this important legislation to empower families to save for future educational expenses in their pursuit of the American dream.
President and CEO
Consumer Bankers Association