I 
114TH CONGRESS 
1ST SESSION H. R. 1377 
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 
MARCH 16, 2015 
Mr. HINOJOSA (for himself and Mr. STIVERS) 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Roth Accounts for 
Youth Savings Act of 2015’’ or the ‘‘RAYS Act’’. 
SEC. 2. ROTH ACCOUNT FOR YOUTH. 
(a) IN GENERAL.—Section 408A of the Internal Rev-
enue Code of 1986 (relating to Roth IRAs) is amended 
by adding at the end the following: 
‘‘(g) ROTH ACCOUNT FOR YOUTH.— 
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‘‘(1) IN GENERAL.—In the case of a dependent 
of a taxpayer to whom this paragraph applies for the 
taxable year and with respect to whom an election 
for the taxable year is in effect under paragraph 
(3)(B), the limitation of subsection (c)(2) shall be 
equal to the sum of— 
‘‘(A) the contribution limit determined 
under this section (before the application of this 
subsection) with respect to the dependent, plus 
‘‘(B)(i) the dollar amount determined (be-
fore the application of this subsection) under 
subsection (c)(2) for the taxable year with re-
spect to such taxpayer, without regard to sec-
tion 219(b)(5)(B), reduced by 
‘‘(ii) the sum of— 
‘‘(I) all prior contributions to all other 
Roth IRAs maintained on behalf of all 
other dependents of such taxpayer for the 
taxable year, determined by taking into ac-
count the order elected by the taxpayer 
under paragraph (3)(B), plus 
‘‘(II) the aggregate amount of con-
tributions to all individual retirement plans 
and Roth IRAs maintained on behalf of 
the taxpayer for the taxable year. 
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‘‘(2) MAXIMUM
CONTRIBUTION.—In no case 
shall the aggregate amount of contributions to all in-
dividual retirement plans and Roth IRAs maintained 
on behalf of a dependent in a taxable year exceed 
the deductible amount determined under section 
219(b)(5)(A). 
‘‘(3) ORDERING RULES.— 
‘‘(A) TAXPAYER’S OWN IRAS.—Subsection 
(c)(2) shall apply with respect to all individual 
retirement plans maintained for the benefit of 
the taxpayer before paragraph (1) applies with 
respect to a dependent of the taxpayer. 
‘‘(B) ELECTION OF ORDER IN THE CASE 
OF MORE THAN 1 DEPENDENT.—For purposes 
of determining the contribution limit under 
paragraph (1) for more than 1 dependent, para-
graph (1)(B)(ii) shall apply with respect to de-
pendents of the taxpayer in the order elected by 
the taxpayer. 
‘‘(4) DEPENDENT TO WHOM PARAGRAPH (1) AP-
PLIES.—Paragraph (1) shall apply to any dependent 
of a taxpayer if— 
‘‘(A) the taxpayer is allowed a deduction 
under section 151 for the dependent for the 
taxable year, 
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‘‘(B) in the case of a taxpayer who is mar-
ried, the taxpayer files a joint return for the 
taxable year, and 
‘‘(C) the amount of compensation (if any) 
includible in the dependent’s gross income for 
the taxable year is less than the compensation 
includible in the gross income of the taxpayer 
for the taxable year. 
‘‘(5) SPECIAL RULE FOR DIVORCED PARENTS, 
ETC.—For purposes of paragraph (3), rules similar 
to the rules of section 152(e) shall apply. 
‘‘(6) COMPENSATION.—For purposes of this 
subsection, the term ‘compensation’ has the meaning 
given such term by section 219(f)(1).’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
408A(d)(2)(B) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘Roth IRA)’’ and by inserting ‘‘Roth 
IRA or a contribution is made to a dependent’s Roth IRA 
under subsection (g))’’ after ‘‘such individual’s spouse’’. 
(c) INCOME DISREGARD UNDER FEDERAL MEANS- 
TESTED BENEFIT PROGRAMS.—The amount in a Roth 
Account for Youth established pursuant to section 
408A(g) of the Internal Revenue Code of 1986 shall be 
disregarded as income or resources for purposes of deter-
mining eligibility for benefits or assistance, or the amount 
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or extent of benefits or assistance, under any Federal ben-
efit program that is means-tested. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
Æ 
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