3.0.0 3081 2022-12-30T07:48:45Z 2023-01-01T23:48:36Z Senate S 2021-10-27 117 ssfi00 Finance Committee Senate Standing Referred to 2021-10-27T15:54:43Z 2021-10-27 ssfi00 Finance Committee Senate Read twice and referred to the Committee on Finance. IntroReferral 2021-10-27 Introduced in Senate IntroReferral 10000 9 Library of Congress P000603 Sen. Paul, Rand [R-KY] Rand Paul R KY N Taxation Taxation 00 2021-10-27 Introduced in Senate 2022-01-05T19:59:39Z Tax Free Education Act of 2021

This bill permits tax-free distributions of up to $5,250 from 401(k) plans for qualified higher and elementary and secondary education expenses and penalty-free withdrawals from individual retirement accounts (IRAs) for student loan expenses.

The bill also excludes from gross income, for income tax purposes, distributions up to $5,250 from employer-sponsored student loan and tuition payment plans. It repeals the limitation on the deduction of interest on student loans and increases from $15,000 to $25,000 (adjusted for inflation) the maximum contribution amounts for certain tax-preferred retirement plans.

The bill allows employees an election to treat contributions to a 401(k) plan as Roth contributions (thus exempting withdrawals from such plans from tax at retirement).

Finally, the bill allows individual taxpayers a new tax deduction for their qualified higher and elementary and secondary education expenses.

]]> Tax Free Education Act of 2021 Display Title Tax Free Education Act of 2021 Short Title(s) as Introduced Tax Free Education Act of 2021 Introduced in Senate IS Official Title as Introduced A bill to amend the Internal Revenue Code of 1986 to permit withdrawals from certain retirement plans for repayment of student loan debt, and for other purposes. Introduced in Senate IS Introduced in Senate 2021-10-27T04:00:00Z https://www.govinfo.gov/content/pkg/BILLS-117s3081is/xml/BILLS-117s3081is.xml 2021-10-27 Read twice and referred to the Committee on Finance. text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.