Pension Protection Act of 2006 passes Senate

The Pension Protection Act of 2006 included a provision making the favorable tax status of 529 college savings plans permanent.

Specifically, the legislation eliminated the 12/31/2010 sunset provision of the Economic Growth and Tax Relief Reconciliation Act of 2001.

Legislative citations from the Act:

HR4 Title XIII Section 1304. Qualified tuition programs

(a) Permanent Extension of Modifications- Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset provisions) shall not apply to section 402 of such Act (relating to modifications to qualified tuition programs).

(b) Regulatory Authority to Prevent Abuse- Section 529 (relating to qualified tuition programs) is amended by adding at the end the following new subsection:

(f) Regulations- Notwithstanding any other provision of this section, the Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section and to prevent abuse of such purposes, including regulations under chapters 11, 12, and 13 of this title.'.