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[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>
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