IN THE SENATE OF THE UNITED STATES
February 2, 2015
Mr. Grassley (for himself, Mr. Casey, Mr. Burr, Mr. Warner, Mr. Roberts, and Mr. Cardin) introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to improve 529 plans.
Computer technology and equipment allowed as a qualified higher education expense for section 529 accounts
Clause (iii) of section 529(e)(3)(A) of the Internal Revenue Code of 1986 is amended by striking
in 2009 or 2010.
Only for use primarily by the beneficiary
Clause (iii) of section 529(e)(3)(A) of such Code is amended by striking
used by the beneficiary and the beneficiary’s family and inserting
used primarily by the beneficiary.
The amendments made by this section shall apply to expenses paid or incurred after December 31, 2014.
Elimination of distribution aggregation requirements
Clause (ii) of section 529(c)(3)(D) of the Internal Revenue Code of 1986 is amended by inserting before the comma at the end the following:
, except for purposes of calculating the earnings portion of any distribution..
The amendment made by this section shall apply to distributions after December 31, 2014.
Contribution of amounts previously distributed in case of withdrawal from school
Paragraph (3) of section 529(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
Special rule for contributions relating to withdrawal from school
In the case of a beneficiary who receives a refund of any qualified higher education expenses from an eligible educational institution in connection with withdrawal from enrollment at such institution, subparagraph (A) shall not apply to that portion of any distribution for the taxable year which is recontributed to a qualified tuition program of which such individual is a beneficiary, but only to the extent such recontribution is made not later than 60 days after the date of such refund and does not exceed the refunded amount.
The amendment made by this section shall apply with respect to distributions after December 31, 2014.