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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. TRANSFERS FROM QUALIFIED TUITION PRO-
GRAMS TO THE THRIFT SAVINGS PLAN. 
(a) IN GENERAL.—Section 8440e of title 5, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(f)(1) Any person may transfer to the Thrift Sav-
ings 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 trans-
fer under paragraph (1), provides (in accord-
ance with such requirements as may by regula-
tion 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 
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‘‘(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 regula-
tions); and 
‘‘(ii) when referring to amounts contrib-
uted under an arrangement described in clause 
(ii) of section 529(b)(1)(A) of such Code, in-
cludes 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 AC-
COUNT 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 contribu-
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tions 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 contribu-
tions 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 (de-
scribed 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 
TREAT-
MENT. 
(a) IN GENERAL.—Paragraph (3) of section 529(c) 
of the Internal Revenue Code of 1986 is amended by add-
ing 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 dis-
tribution from a qualified tuition program 
which, within 60 days of such distribution, 
is transferred under section 8440e(f) of 
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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 quali-
fied 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. 
Æ 
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