(2) by redesignating paragraphs (4) and (5) (as 
redesignated by paragraph (1)) as paragraphs (5) 
and (6), respectively, and by inserting after para-
graph (3) the following new paragraph: 
‘‘(4) QUALIFIED FIRST-TIME HOMEBUYER EX-
PENSES.—The term ‘qualified first-time homebuyer 
expenses’ means, in the case of a designated bene-
ficiary who is a first-time homebuyer, the qualified 
acquisition costs with respect to a principal resi-
dence of such beneficiary. Terms used in this para-
graph shall have the same meaning as when used in 
section 72(t)(8).’’. 
(c) CONFORMING AMENDMENT.—The heading for 
paragraph (2) of section 530(d) of such Code is amended 
by striking ‘‘QUALIFIED EDUCATION EXPENSES’’ and in-
serting ‘‘QUALIFIED EXPENSES’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 4. ROLLOVERS FROM EDUCATION SAVINGS ACCOUNTS 
TO ROTH IRAS. 
(a) IN GENERAL.—Paragraph (5) of section 530(d) 
of the Internal Revenue Code of 1986, as amended by sec-
tion 5, is amended by inserting ‘‘or a Roth IRA’’ after 
‘‘another 401Kids savings account’’. 
VerDate Mar 15 2010 
00:20 Jan 07, 2011
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H37.IH
H37
tjames on DSKG8SOYB1PROD with BILLS
(b) CONFORMING AMENDMENT.—Subsection (e) of 
section 408A of such Code is amended by inserting the 
following after the second sentence: ‘‘Such term includes 
a rollover contribution to a Roth IRA from a 401Kids sav-
ings account described in section 530(d)(5).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 5. RENAMING COVERDELL EDUCATION SAVINGS AC-
COUNTS AS 401KIDS SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Section 530 of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘Coverdell edu-
cation savings account’’ each place it appears and insert-
ing ‘‘401Kids savings account’’. 
(b) CONFORMING AMENDMENTS.— 
(1) The following provisions of the Internal 
Revenue Code of 1986 are amended by striking 
‘‘Coverdell education savings’’ each place it appears 
and inserting ‘‘401Kids savings’’: 
(A) Section 26(b)(2)(E). 
(B) Section 72(e)(9). 
(C) Section 135(c)(2)(C). 
(D) Section 529(c)(6). 
(E) Section 877A(e)(2). 
VerDate Mar 15 2010 
00:20 Jan 07, 2011
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H37.IH
H37
tjames on DSKG8SOYB1PROD with BILLS
(F) Subsections (a) and (e) of section 
4973(a). 
(G) Subsections (c) and (e) of section 
4975. 
(H) Section 6693(a)(2)(E). 
(2) The headings for the following provisions of 
such Code are amended by striking ‘‘COVERDELL 
EDUCATION
SAVINGS’’ and inserting ‘‘401KIDS 
SAVINGS’’: 
(A) Section 72(e)(9). 
(B) Section 135(c)(2)(C). 
(C) Section 529(c)(3)(B)(vi). 
(D) Section 530(b)(1). 
(E) Section 4973(e). 
(F) Section 4975(c)(5). 
(3) The heading for section 4973(e) of such 
Code is amended by striking ‘‘COVERDELL EDU-
CATION SAVINGS’’ and inserting ‘‘401KIDS SAV-
INGS’’. 
(4) The heading for section 530 of such Code 
is amended to read as follows: 
‘‘SEC. 530. 401KIDS SAVINGS ACCOUNTS.’’. 
(5) The item in the table of contents for part 
VII of subchapter F of chapter 1 of such Code relat-
ing to section 530 is amended to read as follows: 
‘‘Sec. 530. 401Kids savings accounts.’’. 
VerDate Mar 15 2010 
03:49 Jan 07, 2011
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6211
E:\BILLS\H37.IH
H37
tjames on DSKG8SOYB1PROD with BILLS
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
VerDate Mar 15 2010 
00:20 Jan 07, 2011
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H37.IH
H37
tjames on DSKG8SOYB1PROD with BILLS