I 

113TH CONGRESS 

2D SESSION H. R. 4129 

To amend the Internal Revenue Code of 1986 to provide for tax preferred 

savings accounts for dependent youth, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2014 

Mr. HINOJOSA 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 provide 

for tax preferred savings accounts for dependent youth, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Roth Accounts for 

5 Youth Savings Act of 2014’’ or the ‘‘RAYS Act’’. 

6 SEC. 2. ROTH ACCOUNT FOR YOUTH. 

7 (a) IN GENERAL.—Section 408A of the Internal Rev8 enue Code of 1986 (relating to Roth IRAs) is amended 

9 by adding at the end the following: 

10 ‘‘(g) ROTH ACCOUNT FOR YOUTH.— 


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1 ‘‘(1) IN GENERAL.—In the case of a dependent 

2 of a taxpayer to whom this paragraph applies for the 

3 taxable year and with respect to whom an election 

4 for the taxable year is in effect under paragraph 

5 (3)(B), the limitation of subsection (c)(2) shall be 

6 equal to the sum of— 

7 ‘‘(A) the contribution limit determined 

8 under this section (before the application of this 

9 subsection) with respect to the dependent, plus 

10 ‘‘(B)(i) the dollar amount determined (be11 fore the application of this subsection) under 

12 subsection (c)(2) for the taxable year with re13 spect to such taxpayer, without regard to sec14 tion 219(b)(5)(B), reduced by 

15 ‘‘(ii) the sum of— 

16 ‘‘(I) all prior contributions to all other 

17 Roth IRAs maintained on behalf of all 

18 other dependents of such taxpayer for the 

19 taxable year, determined by taking into ac20 count the order elected by the taxpayer 

21 under paragraph (3)(B), plus 

22 ‘‘(II) the aggregate amount of con23 tributions to all individual retirement plans 

24 and Roth IRAs maintained on behalf of 

25 the taxpayer for the taxable year. 


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1 ‘‘(2) MAXIMUM CONTRIBUTION.—In no case 

2 shall the aggregate amount of contributions to all in3 dividual retirement plans and Roth IRAs maintained 

4 on behalf of a dependent in a taxable year exceed 

5 the deductible amount determined under section 

6 219(b)(5)(A). 

7 ‘‘(3) ORDERING RULES.— 

8 ‘‘(A) TAXPAYER’S OWN IRAS.—Subsection 

9 (c)(2) shall apply with respect to all individual 

10 retirement plans maintained for the benefit of 

11 the taxpayer before paragraph (1) applies with 

12 respect to a dependent of the taxpayer. 

13 ‘‘(B) ELECTION OF ORDER IN THE CASE

14 OF MORE THAN 1 DEPENDENT.—For purposes 

15 of determining the contribution limit under 

16 paragraph (1) for more than 1 dependent, para17 graph (1)(B)(ii) shall apply with respect to de18 pendents of the taxpayer in the order elected by 

19 the taxpayer. 

20 ‘‘(4) DEPENDENT TO WHOM PARAGRAPH (1) AP21 PLIES.—Paragraph (1) shall apply to any dependent 

22 of a taxpayer if— 

23 ‘‘(A) the taxpayer is allowed a deduction 

24 under section 151 for the dependent for the 

25 taxable year, 


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1 ‘‘(B) in the case of a taxpayer who is mar2 ried, the taxpayer files a joint return for the 

3 taxable year, and 

4 ‘‘(C) the amount of compensation (if any) 

5 includible in the dependent’s gross income for 

6 the taxable year is less than the compensation 

7 includible in the gross income of the taxpayer 

8 for the taxable year. 

9 ‘‘(5) SPECIAL RULE FOR DIVORCED PARENTS, 

10 ETC.—For purposes of paragraph (3), rules similar 

11 to the rules of section 152(e) shall apply. 

12 ‘‘(6) COMPENSATION.—For purposes of this 

13 subsection, the term ‘compensation’ has the meaning 

14 given such term by section 219(f)(1).’’. 

15 (b) CONFORMING AMENDMENT.—Section 

16 408A(d)(2)(B) of the Internal Revenue Code of 1986 is 

17 amended by striking ‘‘Roth IRA)’’ and by inserting ‘‘Roth 

18 IRA or a contribution is made to a dependent’s Roth IRA 

19 under subsection (g))’’ after ‘‘such individual’s spouse’’. 

20 (c) INCOME DISREGARD UNDER FEDERAL MEANS21 TESTED BENEFIT PROGRAMS.—The amount in a Roth 

22 Account for Youth established pursuant to section 

23 408A(g) of the Internal Revenue Code of 1986 shall be 

24 disregarded as income or resources for purposes of deter25 mining eligibility for benefits or assistance, or the amount 


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1 or extent of benefits or assistance, under any Federal ben2 efit program that is means-tested. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 December 31, 2014. 

Æ 


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