The ACE Act amends the Internal Revenue Code to expand 529 plan contributions for elementary and secondary education expenses and increase the gift.
The Achieving Choice in Education Act (ACE Act) modifies the Internal Revenue Code to allow 529 plan contributions for homeschool expenses and additional elementary and secondary school costs, including tuition, curriculum materials, books, online education, tutoring, standardized test fees, dual enrollment, and therapies for students with disabilities. It raises the limit on 529 plan distributions for these expenses from $10,000 to $20,000. The bill also expands the gift tax exclusion for 529 plan contributions to include these expenses, up to a $20,000 annual limit.
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- Legal Framework
- Critical Issues
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