Title: Helping Parents Educate Children During the Coronavirus Pandemic
Policy area: Taxation

Summary:
Helping Parents Educate Children During the Coronavirus Pandemic
This bill expands the types of educational expenses that may be paid from a qualified tuition program (commonly known as a 529 plan) for students enrolled at or attending an elementary or secondary public, private, or religious school. It also permits payments of certain education expenses for home schooling during the COVID-19 (i.e., coronavirus disease 2019) emergency period beginning on March 13, 2020, and ending on the date the emergency period has ended.
The bill also permits penalty free distributions from tax-preferred retirement plans for the period after February 29, 2020, and before January 1, 2021, if contributed to a 529 plan.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3949 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3949

   To amend the Internal Revenue Code of 1986 to permit kindergarten 
  through grade 12 educational expenses to be paid from a 529 account 
                during the Coronavirus Emergency Period.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 11, 2020

 Mr. Cruz (for himself, Mr. Lee, Mr. Scott of South Carolina, and Mr. 
 Scott of Florida) introduced the following bill; which was read twice 
                and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to permit kindergarten 
  through grade 12 educational expenses to be paid from a 529 account 
                during the Coronavirus Emergency Period.

    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 Educate Children 
During the Coronavirus Pandemic''.

SEC. 2. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND ADDITIONAL ELEMENTARY 
              AND SECONDARY EXPENSES DURING THE CORONAVIRUS EMERGENCY 
              PERIOD.

    (a) In General.--Section 529(c)(7) of the Internal Revenue Code of 
1986 is amended to read as follows:
            ``(7) Treatment of elementary and secondary tuition.--Any 
        reference in this section to the term `qualified higher 
        education expense' shall include a reference to the following 
        expenses in connection with enrollment or attendance at, or for 
        students enrolled at or attending, an elementary or secondary 
        public, private, or religious school:
                    ``(A) Tuition.
                    ``(B) Curriculum and curricular materials.
                    ``(C) Books or other instructional materials.
                    ``(D) Online educational materials.
                    ``(E) Tuition for tutoring or educational classes 
                outside of the home, including at a tutoring facility, 
                but only if the tutor or instructor is not related to 
                the student and--
                            ``(i) is licensed as a teacher in any 
                        State,
                            ``(ii) has taught at an eligible 
                        educational institution, or
                            ``(iii) is a subject matter expert in the 
                        relevant subject.
                    ``(F) Fees for a nationally standardized norm-
                referenced achievement test, an advanced placement 
                examination, or any examinations related to college or 
                university admission.
                    ``(G) Fees for dual enrollment in an institution of 
                higher education.
                    ``(H) Educational therapies for students with 
                disabilities provided by a licensed or accredited 
                practitioner or provider, including occupational, 
                behavioral, physical, and speech-language therapies.
        Such term shall include, from the period beginning on March 13, 
        2020, and ending on the date on which the national emergency 
        declared by the President under section 201 of the National 
        Emergencies Act (50 U.S.C. 1601 et seq.) related to the 
        coronavirus (as defined in section 506 of the Coronavirus 
        Preparedness and Response Supplemental Appropriations Act, 2020 
        (Public Law 116-123)) has ended, expenses for the purposes 
        described in subparagraphs (B), (C), (D), (E), and (H) in 
        connection with a homeschool (whether treated as a homeschool 
        or a private school for purposes of applicable State law) or 
        with a parent or guardian educating a child at home due to 
        school closure because of the coronavirus (as so defined).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made after the date of the enactment of this Act.

SEC. 3. ROLLOVERS FROM CERTAIN RETIREMENT PLANS.

    In the case of a distribution from an eligible retirement plan 
described in clause (i), (ii), or (iii) of section 402(c)(8)(B) of the 
Internal Revenue Code of 1986 after February 29, 2020, and before 
January 1, 2021--
            (1) section 72(t) of such Code shall not apply to such 
        distribution;
            (2) such distribution shall be treated as meeting the 
        requirements of section 401(k)(2)(B)(i), if applicable; and
            (3) such distribution shall be treated as having been 
        contributed in a direct trustee-to-trustee transfer within 60 
        days of the distribution for purposes of section 401(a)(31) or 
        408(d)(3), whichever is applicable, if
within 60 days of such distribution, an amount equal to the amount of 
such distribution is contributed to a qualified tuition program under 
section 529 of the Internal Revenue Code of 1986.
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