[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 87 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 87
To amend the Internal Revenue Code of 1986 to improve and expand
education savings accounts.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 4, 2007
Mrs. Biggert introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to improve and expand
education savings accounts.
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 ``401Kids Family Savings Act of
2007''.
SEC. 2. EXTENSION OF DATE FOR SUNSET OF CERTAIN EDUCATION SAVINGS
INCENTIVES.
In the case of the provisions of, and amendments made by, subtitle
A of title IV of the Economic Growth and Tax Relief Reconciliation Act
of 2001 (relating to education savings incentives), section 901 of such
Act (relating to sunset of provisions of Act) shall be applied by
substituting ``December 31, 2015'' for ``December 31, 2010'' in
subsection (a)(1) thereof.
SEC. 3. DISTRIBUTIONS FROM EDUCATION SAVINGS ACCOUNTS FOR FIRST HOME
PURCHASES TREATED AS QUALIFIED DISTRIBUTIONS.
(a) In General.--Subsections (b)(1), (d)(2)(A), (d)(2)(B),
(d)(2)(C)(ii)(II), and (d)(2)(D) of section 530 of the Internal Revenue
Code of 1986 are each amended by striking ``qualified education
expenses'' and inserting ``qualified expenses''.
(b) Qualified Expenses.--Subsection (b) of section 530 of such Code
is amended--
(1) by redesignating paragraphs (2) through (4) as
paragraphs (3) through (5), respectively, and by inserting
after paragraph (1) the following new paragraph:
``(2) Qualified expenses.--The term `qualified expenses'
means--
``(A) qualified education expenses (as defined in
paragraph (3)), and
``(B) qualified first-time homebuyer expenses (as
defined in paragraph (4)).'', and
(2) by redesignating paragraphs (4) and (5) (as
redesignated by paragraph (1)) as paragraphs (5) and (6),
respectively, and by inserting after paragraph (3) the
following new paragraph:
``(4) Qualified first-time homebuyer expenses.--The term
`qualified first-time homebuyer expenses' means, in the case of
a designated beneficiary who is a first-time homebuyer, the
qualified acquisition costs with respect to a principal
residence of such beneficiary. Terms used in this paragraph
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 inserting ``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 section 5, is amended by inserting
``or a Roth IRA'' after ``another 401Kids savings account''.
(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 savings 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 ACCOUNTS AS 401KIDS
SAVINGS ACCOUNTS.
(a) In General.--Section 530 of the Internal Revenue Code of 1986
is amended by striking ``Coverdell education savings account'' each
place it appears and inserting ``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) Subsections (a) and (e) of section 4973(a).
(F) Subsections (c) and (e) of section 4975.
(G) 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 Education Savings'' and inserting
``401Kids Savings''.
(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 relating to section 530
is amended to read as follows:
``Sec. 530. 401Kids savings accounts.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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