[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1377 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 1377

To amend the Internal Revenue Code of 1986 to provide for tax preferred 
     savings accounts for dependent youth, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 2015

  Mr. Hinojosa (for himself and Mr. Stivers) 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 provide for tax preferred 
     savings accounts for dependent youth, and for other purposes.

    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 ``Roth Accounts for Youth Savings Act 
of 2015'' or the ``RAYS Act''.

SEC. 2. ROTH ACCOUNT FOR YOUTH.

    (a) In General.--Section 408A of the Internal Revenue Code of 1986 
(relating to Roth IRAs) is amended by adding at the end the following:
    ``(g) Roth Account for Youth.--
            ``(1) In general.--In the case of a dependent of a taxpayer 
        to whom this paragraph applies for the taxable year and with 
        respect to whom an election for the taxable year is in effect 
        under paragraph (3)(B), the limitation of subsection (c)(2) 
        shall be equal to the sum of--
                    ``(A) the contribution limit determined under this 
                section (before the application of this subsection) 
                with respect to the dependent, plus
                    ``(B)(i) the dollar amount determined (before the 
                application of this subsection) under subsection (c)(2) 
                for the taxable year with respect to such taxpayer, 
                without regard to section 219(b)(5)(B), reduced by
                    ``(ii) the sum of--
                            ``(I) all prior contributions to all other 
                        Roth IRAs maintained on behalf of all other 
                        dependents of such taxpayer for the taxable 
                        year, determined by taking into account the 
                        order elected by the taxpayer under paragraph 
                        (3)(B), plus
                            ``(II) the aggregate amount of 
                        contributions to all individual retirement 
                        plans and Roth IRAs maintained on behalf of the 
                        taxpayer for the taxable year.
            ``(2) Maximum contribution.--In no case shall the aggregate 
        amount of contributions to all individual retirement plans and 
        Roth IRAs maintained on behalf of a dependent in a taxable year 
        exceed the deductible amount determined under section 
        219(b)(5)(A).
            ``(3) Ordering rules.--
                    ``(A) Taxpayer's own iras.--Subsection (c)(2) shall 
                apply with respect to all individual retirement plans 
                maintained for the benefit of the taxpayer before 
                paragraph (1) applies with respect to a dependent of 
                the taxpayer.
                    ``(B) Election of order in the case of more than 1 
                dependent.--For purposes of determining the 
                contribution limit under paragraph (1) for more than 1 
                dependent, paragraph (1)(B)(ii) shall apply with 
                respect to dependents of the taxpayer in the order 
                elected by the taxpayer.
            ``(4) Dependent to whom paragraph (1) applies.--Paragraph 
        (1) shall apply to any dependent of a taxpayer if--
                    ``(A) the taxpayer is allowed a deduction under 
                section 151 for the dependent for the taxable year,
                    ``(B) in the case of a taxpayer who is married, the 
                taxpayer files a joint return for the taxable year, and
                    ``(C) the amount of compensation (if any) 
                includible in the dependent's gross income for the 
                taxable year is less than the compensation includible 
                in the gross income of the taxpayer for the taxable 
                year.
            ``(5) Special rule for divorced parents, etc.--For purposes 
        of paragraph (3), rules similar to the rules of section 152(e) 
        shall apply.
            ``(6) Compensation.--For purposes of this subsection, the 
        term `compensation' has the meaning given such term by section 
        219(f)(1).''.
    (b) Conforming Amendment.--Section 408A(d)(2)(B) of the Internal 
Revenue Code of 1986 is amended by striking ``Roth IRA)'' and by 
inserting ``Roth IRA or a contribution is made to a dependent's Roth 
IRA under subsection (g))'' after ``such individual's spouse''.
    (c) Income Disregard Under Federal Means-Tested Benefit Programs.--
The amount in a Roth Account for Youth established pursuant to section 
408A(g) of the Internal Revenue Code of 1986 shall be disregarded as 
income or resources for purposes of determining eligibility for 
benefits or assistance, or the amount or extent of benefits or 
assistance, under any Federal benefit program that is means-tested.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.
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