To allow limited 529 account funds to be used for elementary and secondary education, including homeschool.

SA 1852. Mr. CORNYN (for Mr. Cruz (for himself, Mr. Cotton, Mr.
Kennedy, and Mr. Sasse)) proposed an amendment to amendment SA 1618
proposed by Mr. McConnell (for Mr. Hatch (for himself and Ms.
Murkowski)) to the bill H.R. 1, to provide for reconciliation pursuant
to titles II and V of the concurrent resolution on the budget for
fiscal year 2018; as follows:

At the end of part IV of subtitle A of title I, insert the
following:

SEC. 11033. 529 ACCOUNT FUNDING FOR ELEMENTARY AND SECONDARY
EDUCATION.

(a) In General.--
(1) In general.--Section 529(c) is amended by adding at the
end the following new paragraph:
``(7) Treatment of elementary and secondary tuition.--Any
reference in this subsection to the term `qualified higher
education expense' shall include a reference to--
``(A) expenses for tuition in connection with enrollment or
attendance at an elementary or secondary public, private, or
religious school, and
``(B) expenses for--
``(i) curriculum and curricular materials,
``(ii) books or other instructional materials,
``(iii) online educational materials,
``(iv) tuition for tutoring or educational classes outside
of the home (but only if the tutor or instructor is not
related to the student),
``(v) dual enrollment in an institution of higher
education, and
``(vi) educational therapies for students with
disabilities,
in connection with a homeschool (whether treated as a
homeschool or a private school for purposes of applicable
State law).''.
(2) Limitation.--Section 529(e)(3)(A) is amended by adding
at the end the following: ``The amount of cash distributions
from all qualified tuition programs described in subsection
(b)(1)(A)(ii) with respect to a beneficiary during any
taxable year shall, in the aggregate, include not more than
$10,000 in expenses described in subsection (c)(7) incurred
during the taxable year.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to contributions made after December 31, 2017.
(c) Offset.--
(1) Modification of rules relating to hardship withdrawals
from cash or deferred arrangements.--Section 401(k) is
amended by adding at the end the following:
``(14) Special rules relating to hardship withdrawals.--For
purposes of paragraph (2)(B)(i)(IV)--
``(A) Amounts which may be withdrawn.--The following
amounts may be distributed upon hardship of the employee:
``(i) Contributions to a profit-sharing or stock bonus plan
to which section 402(e)(3) applies.
``(ii) Qualified nonelective contributions (as defined in
subsection (m)(4)(C)).
``(iii) Qualified matching contributions described in
paragraph (3)(D)(ii)(I).
``(iv) Earnings on any contributions described in clause
(i), (ii), or (iii).
``(B) No requirement to take available loan.--A
distribution shall not be treated as failing to be made upon
the hardship of an employee solely because the employee does
not take any available loan under the plan.".''.
(2) Conforming amendment.--Section 401(k)(2)(B)(i)(IV) is
amended to read as follows:

``(IV) subject to the provisions of paragraph (14), upon
hardship of the employee, or".''.

(3) Effective date.--The amendments made by this subsection
shall apply to plan years beginning after December 31, 2017.
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