1.This Act may be cited as the
401Kids Family Savings Act of
2009
.
2.Extension of date
for sunset of certain education savings incentivesIn
the case of the provisions of, and amendments made by, section 401 of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to
modifications to education individual retirement accounts), 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.
3.Distributions from
education savings accounts for first home purchases treated as qualified
distributions
(a)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)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)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 expensesThe 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)The heading for paragraph (2) of section 530(d) of such
Code is amended by striking qualified education expenses
and inserting
qualified
expenses
.
(d)The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.
4.Rollovers from
education savings accounts to Roth IRAs
(a)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)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)The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.
5.Renaming
Coverdell education savings accounts as 401Kids savings accounts
(a)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)
(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:
.
(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)The amendments made by
this section shall apply to taxable years beginning after the date of the
enactment of this Act.