The easiest way to email your members of CongressDonate Now
H.R.37 - 401Kids Family Savings Act of 2011
To amend the Internal Revenue Code of 1986 to improve and expand education savings accounts.
Loading Bill Text
Rollover any line of text to comment and/or link to it.
SECTION 1. SHORT TITLE.
SEC. 2. EXTENSION OF DATE FOR SUNSET OF CERTAIN EDUCATION SAVINGS INCENTIVES.
In the case of the provisions of, and amendments made by, section 401 of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to modifications to education individual retirement accounts), section 901 of such Act (relating to sunset of provisions of Act) shall be applied by substituting ‘December 31, 2015’ for ‘December 31, 2012’ in subsection (a)(1) thereof.CommentsClose CommentsPermalink
SEC. 3. DISTRIBUTIONS FROM EDUCATION SAVINGS ACCOUNTS FOR FIRST HOME PURCHASES TREATED AS QUALIFIED DISTRIBUTIONS.
(a) In General- Subsections (b)(1), (d)(2)(A), (d)(2)(B), (d)(2)(C)(ii)(II), and (d)(2)(D) of section 530 of the Internal Revenue Code of 1986 are each amended by striking ‘qualified education expenses’ and inserting ‘qualified expenses’.CommentsClose CommentsPermalink
(2) by redesignating paragraphs (4) and (5) (as redesignated by paragraph (1)) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the following new paragraph:CommentsClose CommentsPermalink
‘(4) QUALIFIED FIRST-TIME HOMEBUYER EXPENSES- The term ‘qualified first-time homebuyer expenses’ means, in the case of a designated beneficiary who is a first-time homebuyer, the qualified acquisition costs with respect to a principal residence of such beneficiary. Terms used in this paragraph shall have the same meaning as when used in section 72(t)(8).’.CommentsClose CommentsPermalink
(c) Conforming Amendment- The heading for paragraph (2) of section 530(d) of such Code is amended by striking ‘QUALIFIED EDUCATION EXPENSES’ and inserting ‘QUALIFIED EXPENSES’.CommentsClose CommentsPermalink
SEC. 4. ROLLOVERS FROM EDUCATION SAVINGS ACCOUNTS TO ROTH IRAS.
(a) In General- Paragraph (5) of section 530(d) of the Internal Revenue Code of 1986, as amended by section 5, is amended by inserting ‘or a Roth IRA’ after ‘another 401Kids savings account’.CommentsClose CommentsPermalink
(b) Conforming Amendment- Subsection (e) of section 408A of such Code is amended by inserting the following after the second sentence: ‘Such term includes a rollover contribution to a Roth IRA from a 401Kids savings account described in section 530(d)(5).’.CommentsClose CommentsPermalink
SEC. 5. RENAMING COVERDELL EDUCATION SAVINGS ACCOUNTS AS 401KIDS SAVINGS ACCOUNTS.
(a) In General- Section 530 of the Internal Revenue Code of 1986 is amended by striking ‘Coverdell education savings account’ each place it appears and inserting ‘401Kids savings account’.CommentsClose CommentsPermalink
(1) The following provisions of the Internal Revenue Code of 1986 are amended by striking ‘Coverdell education savings’ each place it appears and inserting ‘401Kids savings’:CommentsClose CommentsPermalink
‘SEC. 530. 401KIDS SAVINGS ACCOUNTS.’.