[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2461 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2461

To amend the Internal Revenue Code of 1986 to permit distributions from 
  individual retirement plans to be contributed to 529 plans without 
              including the distribution in gross income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 23, 2007

  Mr. Frank of Massachusetts 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 permit distributions from 
  individual retirement plans to be contributed to 529 plans without 
              including the distribution in gross income.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CONTRIBUTIONS TO 529 PLANS FROM INDIVIDUAL RETIREMENT PLANS.

    (a) In General.--Subsection (d) of section 408 of the Internal 
Revenue Code of 1986 (relating to individual retirement accounts) is 
amended by adding at the end the following new paragraph:
            ``(9) Transfers to 529 plans.--
                    ``(A) In general.--Paragraph (1) does not apply to 
                any amount paid or distributed out of an individual 
                retirement account or individual retirement annuity to 
                the individual for whose benefit the account or annuity 
                is maintained if such amount is contributed to a 
                qualified tuition program (as defined in section 
                529(b)).
                    ``(B) Limitation.--Subparagraph (A) shall not apply 
                to any payment or distribution if such payment or 
                distribution would result in an excess contribution 
                described in section 529(b)(6).
                    ``(C) Rollover rules to apply.--For purposes of 
                subparagraph (A), rules similar to the rules of 
                paragraphs (3) shall apply.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to payments and distributions in taxable years beginning after 
December 31, 2007.
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