Washington Gov. Jay Inslee signed off on legislation this week that would launch a traditional 529 college savings plan in the state and also revive a prepaid program that has been frozen since August 2015, The Associated Press reports.
Senate Bill 6601, which was sponsored by four Democratic state senators and two Republicans, aims to “help make higher education affordable and accessible to all citizens of the state of Washington by offering a savings incentive that will protect purchasers and beneficiaries against rising tuition costs.”
Washington’s prepaid program — the Guaranteed Education Tuition plan — allows parents to pay tuition in advance. This bill mandates that the plan must be made open to new investments again as of July 2017. The 529 savings plans, meanwhile, exist in 48 other states, and it will again be available in Washington by the end of 2016.
Both programs allow saving money for college but forgoing federal income taxes on investment earnings.
This measure passed 82-13 by the House on March 3, and 45-2 by the Senate on March 8.