College Savings Flexibility Act of 2010

College Savings Flexibility Act of 2010 - Amends the Internal Revenue Code to allow, between 2010 and 2015, distributions from a qualified tuition program to pay for principal and interest owed on student loans.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5030 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5030

To amend the Internal Revenue Code of 1986 to allow distributions from 
              529 plans for the payment of student loans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 15, 2010

    Ms. Bean (for herself, Mr. Kind, Mrs. Halvorson, Ms. Markey of 
    Colorado, and Mr. Nye) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to allow distributions from 
              529 plans for the payment of student loans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``College Savings Flexibility Act of 
2010''.

SEC. 2. 529 PLAN DISTRIBUTION FOR STUDENT LOAN PAYMENTS.

    (a) In General.--Paragraph (3) of section 529(e) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(C) Temporary rule for student loans.--For 
                purposes of this paragraph, any interest or principal 
                paid after December 31, 2009, and before January 1, 
                2015, with respect to a qualified education loan (as 
                defined in section 221) with respect to a designated 
                beneficiary shall be treated as a qualified higher 
                education expense.''.
    (b) Conforming Amendments.--
            (1) Subparagraph (A) of section 72(t)(7) of such Code is 
        amended by inserting ``determined without regard to 
        subparagraph (C) thereof'' after ``section 529(e)(3)''.
            (2) Clause (i) of section 530(b)(2)(A) of such Code is 
        amended by inserting ``determined without regard to 
        subparagraph (C) thereof'' after ``section 529(e)(3)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after December 31, 2009.
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