Sen. Stadelman

CHICAGO – Standing beside State Treasurer Michael Frerichs at a news conference on Tuesday, State Senator Steve Stadelman advocated for legislation he's sponsoring that would provide Illinois families greater flexibility in paying for college and planning for retirement.

Senate Bill 3133 would allow parents with 529 college savings plans to invest unused or leftover college funds into a retirement account. The proposal not only maximizes the benefits of the college savings plan but also fosters long-term financial security for future generations, according to Stadelman.

“Many families are worried about having unused or leftover funds in 529 accounts and not knowing what their options are,” Stadelman said. “By alleviating concerns about unintended taxation and maximizing the money’s value, we can provide greater security and stability for parents who are planning for their family’s future.”

Besides Frerichs, State Representative Diane Blair-Sherlock, Illinois AARP President Al Hollenbeck and Illinois State Board of Higher Education consultant Dorlande Charles spoke in support of Stadelman's legislation at the news conference.

“People are going to be saving their own money into these accounts,” Frerichs said. “But if we don’t make it easier for people to save, if we don’t give them more incentives to save, they’re unable to retire.”

SB 3133 has received approval of the Senate Financial Institutions Committee and awaits a hearing before the full Senate.