Graduate Student Savings Act of 2016

Bill: 114-s-3025
Sponsor: full_name: Sen. Warren, Elizabeth [D-MA]
Introduced: 2016-06-07
Policy area: Taxation
Subjects: Employee benefits and pensions

Higher education

Income tax deductions

Student aid and college costs
Latest action: action_date: 2016-06-07
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2016-06-07
action_desc: Introduced in Senate
text: <p><b>Graduate Student Savings Act of 2016 </b></p> <p>This bill amends the Internal Revenue Code to allow funds paid to an individual to aid in the pursuit of graduate or postdoctoral study or research to be saved in an Individual Retirement Account (IRA). The bill permits the funds to be considered compensation for purposes of current law provisions that limit annual deductible IRA contributions to the lesser of: (1) the deductible amount permitted under current law, or (2) the compensation includible in the individual's gross income for the year. </p>

tv_txt: II 114th CONGRESS 2d Session S. 3025 IN THE SENATE OF THE UNITED STATES June 7, 2016 Ms. Warren (for herself and Mr. Lee ) 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 fellowship and stipend compensation to be saved in an individual retirement account.

1. Short title This Act may be cited as the Graduate Student Savings Act of 2016 . 2. Certain non-tuition fellowship and stipend payments treated as compensation (a) In general Paragraph (1) of section 219(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following: Such term includes any amount paid to an individual to aid the individual in the pursuit of graduate or postdoctoral study or research. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2015.