The Skills Investment Act of 2025 expands tax-advantaged savings accounts to support workforce development and lifelong learning for adults. The bill renames Coverdell Education Savings Accounts to Coverdell Lifelong Learning Accounts and allows the funds to pay for workforce training, career and technical education, career services, and related expenses like computers and transportation for beneficiaries age 16 and older. It increases contribution limits for adults over 30 to $4,000 annually (up from $2,000), extends the contribution age limit to 70, creates a new 25% tax credit for employers who contribute to these accounts for employees, and allows adults age 18 and older to deduct their own contributions. The changes take effect January 1, 2026, and include a higher 20% tax penalty for non-qualified withdrawals.
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