I
111th CONGRESS
2d Session
H. R. 5030
IN THE HOUSE OF REPRESENTATIVES
April 15, 2010
Ms. Bean (for herself, Mr. Kind, Mrs. Halvorson, Ms. Markey of Colorado, and Mr. Nye) 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 distributions from 529 plans for the payment of student loans.
Short title
This Act may be cited as the
College Savings Flexibility Act of
2010
.
529 plan distribution for student loan payments
In general
Paragraph (3) of section 529(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
Temporary rule for student loans
For purposes of this paragraph, any interest or principal paid after December 31, 2009, and before January 1, 2015, with respect to a qualified education loan (as defined in section 221) with respect to a designated beneficiary shall be treated as a qualified higher education expense.
.
Conforming amendments
Subparagraph (A) of section 72(t)(7) of
such Code is amended by inserting determined without regard to
subparagraph (C) thereof
after section 529(e)(3)
.
Clause (i) of
section 530(b)(2)(A) of such Code is amended by inserting determined
without regard to subparagraph (C) thereof
after section
529(e)(3)
.
Effective date
The amendments made by this section shall apply to distributions made after December 31, 2009.