[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4400 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 4400
To amend the Internal Revenue Code of 1986 to allow for special
rollovers to Roth IRAs from long-term qualified tuition programs.
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IN THE SENATE OF THE UNITED STATES
June 14, 2022
Mr. Burr (for himself and Mr. Casey) introduced the following bill;
which was read twice and referred to the Committee on Finance
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A BILL
To amend the Internal Revenue Code of 1986 to allow for special
rollovers to Roth IRAs from long-term qualified tuition programs.
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 ``College Savings Recovery Act.''
SEC. 2. 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
in one or more qualified tuition programs 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 is paid in a direct
trustee-to-trustee transfer to 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 or the designated
beneficiary, as the case may be, under
section 408A(c)(2) for the taxable year
(reduced by the amount of aggregate
contributions made during the taxable
year before the date of such
distribution to all individual
retirement plans maintained for the
benefit of the account owner or
designated beneficiary, as the case may
be), 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.
``(iii) Account owner.--For purposes of
this subparagraph, the term `account owner'
means the individual who established the
qualified tuition program account under
applicable State law.''.
(b) Qualified Rollover Contribution.--Paragraph (1) of section
408A(e) of such Code is amended--
(1) by striking the period at the end of subparagraph (B)
and inserting ``, and'',
(2) 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).'', and
(3) by adding at the end the following new sentence:
``Under regulations established by the Secretary, the earnings
and contributions of any qualified tuition program from which a
qualified rollover contribution is made under subparagraph (C)
shall be treated in the same manner as the earnings and
contributions of a Roth IRA from which a qualified rollover
contribution is made under subparagraph (A).''.
(c) Reporting.--Section 529(d) of such Code is amended--
(1) by striking ``Each officer'' and inserting the
following:
``(1) In general.--Each officer'',
(2) by striking ``by this subsection'' and inserting ``by
this paragraph'', and
(3) by adding at the end the following new paragraph:
``(2) Rollover distributions.--In the case of any
distribution described in subsection (c)(3)(A), the officer or
employee having control of the qualified tuition program (or
their designee) shall provide a report to the trustee of the
Roth IRA to which the distribution is made. Such report shall
be filed at such time and in such manner as the Secretary may
require and shall include information with respect to the
contributions, distributions, and earnings of the qualified
tuition program as of the date of the distribution described in
subsection (c)(3)(A), together with such other matters as the
Secretary may require.''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to distributions after December 31, 2022.
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