[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2500 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2500

To amend the Internal Revenue Code of 1986 to allow nontaxable employer 
      matching contributions to section 529 college savings plans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 19, 2009

 Mr. Pitts (for himself, Mr. Michaud, and Mr. Wittman) 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 allow nontaxable employer 
      matching contributions to section 529 college savings plans.

    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 ``Help Kids Save for College Act of 
2009''.

SEC. 2. NONTAXABLE EMPLOYER MATCHING CONTRIBUTIONS TO SECTION 529 
              COLLEGE SAVINGS PLANS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 139C the 
following new section:

``SEC. 139D. EMPLOYER MATCHING CONTRIBUTIONS TO SECTION 529 COLLEGE 
              SAVINGS PLANS.

    ``(a) Exclusion.--Gross income of an employee does not include 
amounts paid during the taxable year by the employer to a qualified 
tuition program for the benefit of a designated beneficiary if such 
amounts are paid pursuant to a college savings assistance program.
    ``(b) Limitation.--The amount excluded from the gross income of an 
employee under subsection (a) for any taxable year with respect to each 
designated beneficiary shall not exceed the lesser of--
            ``(1) $1,000, or
            ``(2) the amount paid by the employee during such year to 
        such program for the benefit of such beneficiary.
    ``(c) College Savings Assistance Program.--For purposes of this 
section, a college savings assistance program is a separate written 
plan of an employer for the exclusive benefit of such employer's 
employees--
            ``(1) under which the employer makes payments to qualfied 
        tuition programs for the benefit of designated beneficiaries, 
        and
            ``(2) which meets requirements similar to the requirements 
        of paragraphs (2), (3), (5), and (6) of section 127(b).
    ``(d) Definitions.--For purposes of this section, terms used is 
this section which are also used in section 529 shall have the 
respective meanings given such terms by section 529.''.
    (b) Clerical Amendment.--The table of sections for such part III is 
amended by inserting after the item relating to section 139C the 
following new item:

``Sec. 139D. Employer matching contributions to section 529 college 
                            savings plans.''.
    (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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