I 

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. 

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


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1 SECTION 1. TRANSFERS FROM QUALIFIED TUITION PRO2 GRAMS TO THE THRIFT SAVINGS PLAN. 

3 (a) IN GENERAL.—Section 8440e of title 5, United 

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘(f)(1) Any person may transfer to the Thrift Sav7 ings Fund, to the account of any qualified member, any 

8 contributions previously made by such person under a 

9 qualified tuition program and with respect to which such 

10 member is the designated beneficiary. 

11 ‘‘(2) For purposes of this subsection— 

12 ‘‘(A) the term ‘qualified member’ means any 

13 member who— 

14 ‘‘(i) is eligible to participate in the Thrift 

15 Savings Plan by virtue of section 211(b) of title 

16 37; and 

17 ‘‘(ii) in connection with the proposed trans18 fer under paragraph (1), provides (in accord19 ance with such requirements as may by regula20 tion apply)— 

21 ‘‘(I) any information necessary— 

22 ‘‘(aa) to identify such member’s 

23 account in the Thrift Savings Fund; 

24 or 

25 ‘‘(bb) if none, to establish such 

26 an account; and 


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1 ‘‘(II) any other information which 

2 may be necessary to effect such transfer; 

3 ‘‘(B) the terms ‘qualified tuition program’ and 

4 ‘designated beneficiary’ have the respective meanings 

5 given them by section 529 of the Internal Revenue 

6 Code of 1986; and 

7 ‘‘(C) the term ‘contributions’— 

8 ‘‘(i) when referring to amounts contributed 

9 under an arrangement described in clause (i) of 

10 section 529(b)(1)(A) of such Code, means the 

11 cash value of the credits or certificates referred 

12 to in such clause (as determined under regula13 tions); and 

14 ‘‘(ii) when referring to amounts contrib15 uted under an arrangement described in clause 

16 (ii) of section 529(b)(1)(A) of such Code, in17 cludes any earnings thereon. 

18 ‘‘(3) A transfer under this subsection for the benefit 

19 of a qualified member may be made irrespective of whether 

20 or not such member has otherwise elected to participate 

21 in the Thrift Savings Plan.’’. 

22 (b) ESTABLISHMENT AND MAINTENANCE OF AC23 COUNT IN THRIFT SAVINGS FUND.—Section 8439(a)(1) 

24 of title 5, United States Code, is amended by striking 

25 ‘‘under section 8432 of this title or who makes contribuVerDate Nov 24 2008 03:43 Mar 17, 2010 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4857.IH H4857

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1 tions to the Thrift Savings Fund.’’ and inserting ‘‘under 

2 section 8432, for whose benefit any transfers are made 

3 under section 8440e(f), or who otherwise makes contribu4 tions or for whom contributions are otherwise made to the 

5 Thrift Savings Fund.’’. 

6 (c) REGULATIONS.—Any regulations necessary to 

7 carry out the amendments made by this section shall, to 

8 the extent that they relate to the operation of the Thrift 

9 Savings Fund, be prescribed by the Executive Director of 

10 the Federal Retirement Thrift Investment Board (de11 scribed in section 8474 of title 5, United States Code) 

12 after consultation with the Secretary of the Treasury. 

13 SEC. 2. DISTRIBUTIONS FROM QUALIFIED TUITION PLANS 

14 PROVIDED TAX-FREE ROLLOVER TREAT15 MENT. 

16 (a) IN GENERAL.—Paragraph (3) of section 529(c) 

17 of the Internal Revenue Code of 1986 is amended by add18 ing at the end the following new subparagraph: 

19 ‘‘(E) DISTRIBUTIONS FOR THRIFT SAVINGS

20 FUND OF MEMBER OF UNIFORMED SERVICES.— 

21 ‘‘(i) IN GENERAL.—Subparagraph (A) 

22 shall not apply to that portion of any dis23 tribution from a qualified tuition program 

24 which, within 60 days of such distribution, 

25 is transferred under section 8440e(f) of 


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1 title 5, United States Code, to the Thrift 

2 Savings Fund (as defined in section 

3 7701(j)(4)) of a qualified member who is 

4 the designated beneficiary under the quali5 fied tuition program. For purposes of the 

6 preceding sentence, the term ‘qualified 

7 member’ has the meaning given such term 

8 by such section 8440e(f). 

9 ‘‘(ii) LIMITATION.—Clause (i) shall 

10 not apply to any transfer from a qualified 

11 tuition program is clause (i) applied to a 

12 prior transfer from such program.’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall apply to distributions after the date of 

15 the enactment of this Act. 

Æ 


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