H.R. 2965 — Introduced in House

I 113th CONGRESS 1st Session H. R. 2965 IN THE HOUSE OF REPRESENTATIVES August 1, 2013 Mr. Pitts 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. 1. Short title This Act may be cited as the Help Kids Save for College Act of 2013. 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 139D the following new section: 139E. 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 139D the following new item: Sec. 139E. 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.