US SB3217

Renames Coverdell Education Savings Accounts to "Coverdell Lifelong Learning Accounts" and expands eligible expenses to include workforce training services, career and technical education, adult literacy programs, and related technology purchases for beneficiaries age 16 and older

Raises the maximum contribution age from 18 to 70, increases the annual contribution limit from $2,000 to $4,000 for beneficiaries over age 30, and caps account balances at $10,000 after age 30

Creates a new 25% tax credit for employers who make nonelective contributions to employees' Coverdell lifelong learning accounts

Allows beneficiaries age 18 and older to claim a tax deduction for contributions made to their own accounts, while increasing the penalty tax on non-qualified distributions from 10% to 20%

Takes effect January 1, 2026, with existing Coverdell education savings accounts automatically converted to lifelong learning accounts