The Skills Investment Act of 2024 expands and modernizes the Coverdell education savings account program by renaming it the Coverdell lifelong learning account and broadening what funds can be used for. Under the bill, account holders can now withdraw money for workforce development programs, career training, technical certifications, and computers or internet access needed for skill development, in addition to traditional education expenses. The bill increases contribution limits to $4,000 annually for beneficiaries over age 30 (up from $2,000) and raises the age cap for contributions from 18 to 70, allowing adults to save for career development throughout their working years. The legislation also creates a new tax credit for employers who make contributions to employee accounts, worth 25 percent of employer contributions, and allows individuals who are beneficiaries of these accounts to deduct their own contributions from their taxes. These changes are effective beginning January 1, 2024, making the accounts more accessible for working adults seeking to gain new skills and credentials.
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