S. 4103 - Helping Parents Save for College Act of 2022

117TH CONGRESS
2D SESSION

S. 4103

To amend the Internal Revenue Code of 1986 to treat contributions
to a qualified tuition program as qualified retirement savings
contributions for purposes of the saver's credit.

IN THE SENATE OF THE UNITED STATES

APRIL 28, 2022

Ms. HASSAN (for herself and Ms. COLLINS) introduced the following bill;
which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to treat contributions to a qualified tuition program as qualified retirement savings contributions for purposes of the saver's credit.

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 "Helping Parents Save for College Act of 2022".

SEC. 2. TREATMENT OF CONTRIBUTIONS TO QUALIFIED TUITION PROGRAM.

(a) IN GENERAL. — Paragraph (1) of section 25B(d) of the Internal Revenue Code of 1986 is amended —

(1) by striking "and" at the end of subparagraph (C),

(2) by striking the period at the end of subparagraph (D) and inserting ", and", and

(3) by adding at the end the following new subparagraph:

"(E) the amount of any contributions made by such individual to any qualified tuition program (as defined in section 529(b)) of which the individual or a dependent of the individual is the designated beneficiary (as defined in section 529(e)(1)).".

(b) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

SEC. 3. SPECIAL ROLLOVER TO ROTH IRA FROM LONG-TERM QUALIFIED TUITION PROGRAM.

(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) SPECIAL ROLLOVER TO ROTH IRA FROM LONG-TERM QUALIFIED TUITION PROGRAM. — For purposes of this section —

"(i) IN GENERAL. — In the case of a distribution from a qualified tuition program which has been maintained by an account owner for the 10-year period ending on the date of such distribution —

"(I) subparagraph (A) shall not apply to any portion of such distribution which, not later than 60 days after such distribution, is paid into a Roth IRA maintained for the benefit of such account owner or the designated beneficiary under such qualified tuition program, and

"(II) such portion shall be treated as a rollover contribution for purposes of section 408A(e).

"(ii) LIMITATION. — Clause (i) shall only apply to so much of any distribution as does not exceed the lesser of —

"(I) the amount applicable to the account owner under section 408A(c)(2) for the taxable year, or

"(II) the aggregate amount contributed to the program (and earnings attributable thereto) before the 5-year period ending on the date of the distribution.".

(b) QUALIFIED ROLLOVER CONTRIBUTION. — Paragraph (1) of section 408A(e) of the Internal Revenue Code of 1986 is amended —

(1) by striking "contribution — " and inserting "contribution to a Roth IRA — ",

(2) by striking "to a Roth IRA" in subparagraph (A),

(3) by striking the period at the end of subparagraph (B) and inserting ", or", and

(4) by inserting after subparagraph (B) the following new subparagraph:

"(C) from a qualified tuition program to the extent provided in section 529(c)(3)(E).".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply with respect to distributions in taxable years beginning after the date of the enactment of this Act.