This Act may be cited as the 529 Retirement Enhancement Act of 2026.

(a) In general Clause (ii) of section 529(c)(3)(E) of the Internal Revenue Code of 1986 is amended— (1) by striking subclause (II), and (2) by striking Limitations.— and all that follows through Clause (i) shall only apply and inserting Annual limitation.—Clause (i) shall only apply. (b) Effective date The amendments made by this section shall apply to distributions made in taxable years beginning after the date of the enactment of this Act.