I 
114TH CONGRESS 
2D SESSION 
H. R. 5193 
To amend the Internal Revenue Code of 1986 to make improvements in 
the rules related to qualified tuition programs and qualified ABLE programs. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 11, 2016 
Ms. JENKINS of Kansas 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 make 
improvements in the rules related to qualified tuition 
programs and qualified ABLE programs. 
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 ‘‘529 and ABLE Ac-
count Improvement Act of 2016’’. 
SEC. 2. EMPLOYER CONTRIBUTIONS TO QUALIFIED TUI-
TION PROGRAMS AND QUALIFIED ABLE PRO-
GRAMS. 
(a) IN GENERAL.—Subsection (a) of section 132 of 
the Internal Revenue Code of 1986 is amended by striking 
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‘‘or’’ at the end of paragraph (7), by striking the period 
at the end of paragraph (8) and inserting ‘‘, or’’, and by 
adding at the end the following new paragraph: 
‘‘(9) qualified tuition program and qualified 
ABLE program contributions.’’. 
(b) QUALIFIED TUITION PROGRAM AND QUALIFIED 
ABLE PROGRAM CONTRIBUTIONS DEFINED.—Section 
132 of such Code is amended by redesignating subsection 
(o) as subsection (p) and inserting after subsection (n) 
the following new subsection: 
‘‘(o) QUALIFIED TUITION PROGRAM AND QUALIFIED 
ABLE PROGRAM CONTRIBUTIONS DEFINED.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified tuition and qualified ABLE 
program contributions’ means contributions (includ-
ing matching contributions) made by an employer 
directly to a qualified tuition program (as described 
in section 529) or qualified ABLE program (as de-
scribed in section 529A) designated by an employee 
if— 
‘‘(A) such contribution is made to an ac-
count under such program for which the des-
ignated beneficiary is the employee or a mem-
ber of the family of the employee (within the 
meaning of section 529(e)(2)), and 
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‘‘(B) such contribution is made in connec-
tion with a qualified payroll deduction contribu-
tion program established by the employer. 
‘‘(2) QUALIFIED
PAYROLL
DEDUCTION
CON-
TRIBUTION
PROGRAM.—For purposes of this sub-
section, the term ‘qualified payroll deduction con-
tribution program’ means a program established by 
an employer— 
‘‘(A) under which employees may elect to 
make contributions to accounts described in 
paragraph (1)(A) which reduce the amount of 
wages received directly by such employee by the 
amount of such contribution, and 
‘‘(B) which is made available on substan-
tially the same terms to each member of a 
group of employees which is defined under a 
reasonable classification set up by the employer 
which does not discriminate in favor of highly 
compensated employees (as defined in section 
414(q)). 
‘‘(3) LIMITATION ON EXCLUSION.—The amount 
of qualified tuition and qualified ABLE program 
contributions which may be excluded from gross in-
come under subsection (a)(9) with respect to any 
employee shall not exceed $100 in any calendar year. 
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