Helping Parents Save for College Act of 2022
Bill: S.4103 | Sponsor: Sen. Hassan, Margaret Wood (D-NH)
Policy area: Taxation

Summary:
Helping Parents Save for College Act of 2022
This bill allows a retirement savings tax credit for contributions to any qualified tuition program (e.g., a 529 qualified tuition plan). It also permits a rollover of unused contributions to a ROTH IRA savings account.

To amend the Internal Revenue Code of 1986 to treat contributions to a 
qualified tuition program as qualified retirement savings contributions 
                  for purposes of the saver's credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Helping Parents Save for College Act 
of 2022''.

SEC. 2. TREATMENT OF CONTRIBUTIONS TO QUALIFIED TUITION PROGRAM.

    (a) In General.--Paragraph (1) of section 25B(d) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of subparagraph (C),
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``, and'', and
            (3) by adding at the end the following new subparagraph:
                    ``(E) the amount of any contributions made by such 
                individual to any qualified tuition program (as defined 
                in section 529(b)) of which the individual or a 
                dependent of the individual is the designated 
                beneficiary (as defined in section 529(e)(1)).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. 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 is amended by adding at the end the following new 
subparagraph:
                    ``(E) Special rollover to roth ira from long-term 
                qualified tuition program.--For purposes of this 
                section--
                            ``(i) In general.--In the case of a 
                        distribution from a qualified tuition program 
                        which has been maintained by an account owner 
                        for the 10-year period ending on the date of 
                        such distribution--
                                    ``(I) subparagraph (A) shall not 
                                apply to any portion of such 
                                distribution 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 
                                designated beneficiary under such 
                                qualified tuition program, and
                                    ``(II) such portion shall be 
                                treated as a rollover contribution for 
                                purposes 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) the amount applicable to the 
                                account owner under section 408A(c)(2) 
                                for the taxable year, or
                                    ``(II) the aggregate amount 
                                contributed to the program (and 
                                earnings attributable thereto) before 
                                the 5-year period ending on the date of 
                                the distribution.''.
    (b) Qualified Rollover Contribution.--Paragraph (1) of section 
408A(e) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``contribution--'' and inserting 
        ``contribution to a Roth IRA--'',
            (2) by striking ``to a Roth IRA'' in subparagraph (A),
            (3) by striking the period at the end of subparagraph (B) 
        and inserting ``, or'', and
            (4) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) from a qualified tuition program to the 
                extent provided in section 529(c)(3)(E).''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to distributions in taxable years beginning after 
the date of the enactment of this Act.
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