I 
113TH CONGRESS 
2D SESSION 
H. R. 4333 
To amend the Internal Revenue Code of 1986 to improve 529 plans. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 27, 2014 
Ms. JENKINS (for herself, Mr. KIND, and Mr. YOUNG of Indiana) 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 improve 
529 plans. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. COMPUTER TECHNOLOGY AND EQUIPMENT AL-
LOWED AS A QUALIFIED HIGHER EDUCATION 
EXPENSE FOR SECTION 529 ACCOUNTS. 
(a) MADE PERMANENT.—Clause (iii) of section 
529(e)(3)(A) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘in 2009 or 2010’’. 
(b) ONLY
FOR USE PRIMARILY
BY
THE BENE-
FICIARY.—Clause (iii) of section 529(e)(3)(A) of such 
Code is amended by striking ‘‘used by the beneficiary and 
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the beneficiary’s family’’ and inserting ‘‘used primarily by 
the beneficiary’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid or incurred after 
December 31, 2010. 
SEC. 2. INVESTMENT DIRECTION UNDER QUALIFIED TUI-
TION PROGRAMS. 
(a) IN GENERAL.—Paragraph (4) of section 529(b) 
of the Internal Revenue Code of 1986 is amended by strik-
ing the period at the end and inserting ‘‘more frequently 
than 4 times per calendar year.’’. 
(b) CLERICAL AMENDMENT.—The heading for para-
graph (4) of section 529(b) of such Code is amended by 
striking ‘‘NO
INVESTMENT
DIRECTION’’ and inserting 
‘‘LIMITED INVESTMENT DIRECTION’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to years beginning after December 
31, 2013. 
SEC. 3. ELIMINATION OF DISTRIBUTION AGGREGATION RE-
QUIREMENTS. 
(a) 
IN
GENERAL.—Clause 
(ii) 
of 
section 
529(c)(3)(D) of the Internal Revenue Code of 1986 is 
amended by inserting before the comma at the end the 
following: ‘‘, except for purposes of calculating the earn-
ings portion of any distribution.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distributions after December 31, 
2013. 
SEC. 4. CONTRIBUTION OF AMOUNTS PREVIOUSLY DIS-
TRIBUTED IN CASE OF WITHDRAWAL FROM 
SCHOOL. 
(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) SPECIAL RULE FOR CONTRIBUTIONS 
RELATING TO WITHDRAWAL FROM SCHOOL.—In 
the case of a beneficiary who receives a refund 
of any qualified higher education expenses from 
an eligible educational institution in connection 
with withdrawal from enrollment at such insti-
tution, subparagraph (A) shall not apply to that 
portion of any distribution for the taxable year 
which is recontributed to a qualified tuition pro-
gram of which such individual is a beneficiary, 
but only to the extent such recontribution is 
made not later than 60 days after the date of 
such refund and does not exceed the refunded 
amount.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to distributions after 
December 31, 2013. 
SEC. 5. SPECIAL ROLLOVER TO ROTH IRA FROM LONG- 
TERM QUALIFIED TUITION PROGRAM. 
(a) IN GENERAL.—Paragraph (3) of section 529(c) 
of the Internal Revenue Code of 1986, as amended by this 
Act, is amended by adding at the end the following new 
subparagraph: 
‘‘(F) SPECIAL
ROLLOVER
TO
ROTH
IRA 
FROM
LONG-TERM
QUALIFIED
TUITION
PRO-
GRAM.—For purposes of this section— 
‘‘(i) IN GENERAL.—In the case of a 
distribution from a qualified tuition pro-
gram which has been maintained by an ac-
count owner for the 10-year period ending 
on the date of such distribution— 
‘‘(I) subparagraph (A) shall not 
apply to any portion of such distribu-
tion which, not later than 60 days 
after such distribution, is paid into a 
Roth IRA maintained for the benefit 
of such account owner or the des-
ignated beneficiary under such quali-
fied tuition program, and 
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‘‘(II) such portion shall be treat-
ed as a rollover contribution for pur-
poses of section 408A(e). 
‘‘(ii) LIMITATION.—Clause (i) shall 
only apply to so much of any distribution 
as does not exceed the lesser of— 
‘‘(I) $25,000, or 
‘‘(II) the aggregate amount con-
tributed to the program (and earnings 
attributable thereto) before the 5-year 
period ending on the date of the dis-
tribution.’’. 
(b) QUALIFIED ROLLOVER CONTRIBUTION.—Para-
graph (1) of section 408A(e) of such Code is amended by 
striking the period at the end of subparagraph (B) and 
inserting ‘‘, and’’ and by inserting after subparagraph (B) 
the following new subparagraph: 
‘‘(C) from a covered qualified tuition pro-
gram (as defined in section 529(c)(3)(F)(ii)).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to distributions after 
December 31, 2013. 
Æ 
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