Allows a person to transfer to the Thrift Savings Fund account of any qualified member contributions previously made by such person under a qualified tuition program for which such member is the designated beneficiary.
Defines "qualified member" to mean any member of the uniformed services serving on active duty or any member of the Ready Reserve in any pay status who: (1) is eligible to participate in the Thrift Savings Plan; and (2) provides any information necessary to identify or establish such member's account and to effect such transfer. Permits such a transfer for the benefit of a qualified member to be made irrespective of whether such member has otherwise elected to participate.
Amends the Internal Revenue Code to exclude any such qualified tuition program distribution to a Thrift Savings Fund from the distributee's gross income.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4857 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 4857
To amend title 5, United States Code, to allow amounts to be
transferred from a qualified tuition program to the Thrift Savings Plan
for the benefit of any individual who is eligible to participate in
such Plan by virtue of being a member of the uniformed services or of
the Ready Reserve, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 16, 2010
Mr. Hodes introduced the following bill; which was referred to the
Committee on Oversight and Government Reform, and in addition to the
Committee on Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend title 5, United States Code, to allow amounts to be
transferred from a qualified tuition program to the Thrift Savings Plan
for the benefit of any individual who is eligible to participate in
such Plan by virtue of being a member of the uniformed services or of
the Ready Reserve, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TRANSFERS FROM QUALIFIED TUITION PROGRAMS TO THE THRIFT
SAVINGS PLAN.
(a) In General.--Section 8440e of title 5, United States Code, is
amended by adding at the end the following:
``(f)(1) Any person may transfer to the Thrift Savings Fund, to the
account of any qualified member, any contributions previously made by
such person under a qualified tuition program and with respect to which
such member is the designated beneficiary.
``(2) For purposes of this subsection--
``(A) the term `qualified member' means any member who--
``(i) is eligible to participate in the Thrift
Savings Plan by virtue of section 211(b) of title 37;
and
``(ii) in connection with the proposed transfer
under paragraph (1), provides (in accordance with such
requirements as may by regulation apply)--
``(I) any information necessary--
``(aa) to identify such member's
account in the Thrift Savings Fund; or
``(bb) if none, to establish such
an account; and
``(II) any other information which may be
necessary to effect such transfer;
``(B) the terms `qualified tuition program' and `designated
beneficiary' have the respective meanings given them by section
529 of the Internal Revenue Code of 1986; and
``(C) the term `contributions'--
``(i) when referring to amounts contributed under
an arrangement described in clause (i) of section
529(b)(1)(A) of such Code, means the cash value of the
credits or certificates referred to in such clause (as
determined under regulations); and
``(ii) when referring to amounts contributed under
an arrangement described in clause (ii) of section
529(b)(1)(A) of such Code, includes any earnings
thereon.
``(3) A transfer under this subsection for the benefit of a
qualified member may be made irrespective of whether or not such member
has otherwise elected to participate in the Thrift Savings Plan.''.
(b) Establishment and Maintenance of Account in Thrift Savings
Fund.--Section 8439(a)(1) of title 5, United States Code, is amended by
striking ``under section 8432 of this title or who makes contributions
to the Thrift Savings Fund.'' and inserting ``under section 8432, for
whose benefit any transfers are made under section 8440e(f), or who
otherwise makes contributions or for whom contributions are otherwise
made to the Thrift Savings Fund.''.
(c) Regulations.--Any regulations necessary to carry out the
amendments made by this section shall, to the extent that they relate
to the operation of the Thrift Savings Fund, be prescribed by the
Executive Director of the Federal Retirement Thrift Investment Board
(described in section 8474 of title 5, United States Code) after
consultation with the Secretary of the Treasury.
SEC. 2. DISTRIBUTIONS FROM QUALIFIED TUITION PLANS PROVIDED TAX-FREE
ROLLOVER TREATMENT.
(a) In General.--Paragraph (3) of section 529(c) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
``(E) Distributions for thrift savings fund of
member of uniformed services.--
``(i) In general.--Subparagraph (A) shall
not apply to that portion of any distribution
from a qualified tuition program which, within
60 days of such distribution, is transferred
under section 8440e(f) of title 5, United
States Code, to the Thrift Savings Fund (as
defined in section 7701(j)(4)) of a qualified
member who is the designated beneficiary under
the qualified tuition program. For purposes of
the preceding sentence, the term `qualified
member' has the meaning given such term by such
section 8440e(f).
``(ii) Limitation.--Clause (i) shall not
apply to any transfer from a qualified tuition
program is clause (i) applied to a prior
transfer from such program.''.
(b) Effective Date.--The amendment made by this section shall apply
to distributions after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to House Oversight and Government Reform
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to House Ways and Means
Referred to the Subcommittee on Federal Workforce, Post Office, and the District of Columbia.
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