Lifelong Learning Accounts

         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         

         



        Council for Adult and Experiential Learning (CAEL)

        Lifelong Learning Accounts Policy Vision

        CAEL's vision of national policy is that Lifelong Learning Accounts (LiLA) may be offered as part of compensation packages for employees of all sizes and types of employers. Just as health care and pension benefits enjoy a tax-favored status, Lifelong Learning Accounts would provide tax incentives for investing in human capital. CAEL is currently focusing on federal legislation, and we will work in the demonstration states in cooperation with the local sponsors in the proposed demonstration to identify how their states might be able to support life long learning accounts.

        On the federal level, CAEL is working on a proposal to modify several pieces of existing legislation in order to create LiLAs, rather than supporting new legislation.

      • Our proposal would amend existing legislation to allow the following:

      • Eligibility for people over the age of 30 (Education IRA);

      • Expand use to include preparation for a new job or career whether the taxpayer is currently employed or not (Employee deduction and Lifetime Learning Credit);

      • Remove enrollment restrictions which currently require that an employee be at least a half-time student (Education IRA);

      • Provides for the purchase of equipment similar to the Education IRA (Lifetime Learning Credit does not);

      • Allows contributions from the taxpayer employee, his or her employer, and third parties at any time during the employee's life (Education IRA contributions must be made before the beneficiary is 18);

      • Caps the account balance at $5,250, unlike the Education IRA;

      • Allows an employer to contribute up to the $5,250 account balance limitation and get up to a $500 tax credit, even if the taxpayer employee does not contribute any funds if a taxpayer employee qualifies for the Earned Income Tax Credit;

      • offers a $500 tax credit to small and mid-sized employers who contribute to employee's LiLAs.

        CAEL is discussing this idea with congressional members and staff.

        CAEL is a national non-profit organization focused on life-long learning in companies, educational institutions, and communities. It assists employers, colleges and universities, and adult learners. For more information, contact Amy Sherman at asherman@cael.org or 312.499.2635 or go to CAEL's web site at: www.cael.org.



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        Other CAEL Documents on Lifelong Learning:
      • Why Lifelong Learning Accounts?
      • Lifelong Learning Accounts Core Components
      • Lifelong Learning Accounts Needs and Benefits
      • Lifelong Learning Accounts Summary
      • Who Pays for Lifelong Learning