Page:United States Statutes at Large Volume 115 Part 1.djvu/84

 115 STAT. 62 PUBLIC LAW 107-16—JUNE 7, 2001 "(vi) COORDINATION WITH EDUCATION INDIVIDUAL RETIREMENT ACCOUNTS. —I f, with respect to an individual for any taxable year— "(I) the aggregate distributions to which clauses (i) and (ii) and section 530(d)(2)(A) apply, exceed "(II) the total amount of qualified higher education expenses otherwise taken into account under clauses (i) and (ii) (after the application of clause (v)) for such year, the taxpayer shall allocate such expenses among such distributions for purposes of determining the amount of the exclusion under clauses (i) and (ii) and section 530(d)(2)(A).". (2) CONFORMING AMENDMENTS.— 26 USC 135. (A) Section 135(d)(2)(B) is amended by striking "the exclusion under section 530(d)(2)" and inserting "the exclusions under sections 529(c)(3)(B) and 530(d)(2)". (B) Section 221(e)(2)(A) is amended by inserting "529," after "135,". (c) ROLLOVER TO DIFFERENT PROGRAM FOR BENEFIT OF SAME DESIGNATED BENEFICIARY. —Section 529(c)(3)(C) (relating to change in beneficiaries) is amended— (1) by striking "transferred to the credit" in clause (i) and inserting "transferred— "(I) to another qualified tuition program for the benefit of the designated beneficiary, or "(II) to the credit", (2) by adding at the end the following new clause: "(iii) LIMITATION ON CERTAIN ROLLOVERS.—Clause (i)(I) shall not apply to any transfer if such transfer occurs within 12 months from the date of a previous transfer to any qualified tuition program for the benefit of the designated beneficiary.", and (3) by inserting "OR PROGRAMS" after "BENEFICIARIES" in the heading. (d) MEMBER OF FAMILY INCLUDES FIRST COUSIN.— Section 529(e)(2) (defining member of family) is amended by striking "and" at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and by inserting "; and", and by adding at the end the following new subparagraph: "(D) any first cousin of such beneficiary.". (e) ADJUSTMENT OF LIMITATION ON ROOM AND BOARD DISTRIBU- TIONS. —Section 529(e)(3)(B)(ii) is amended to read as follows: "(ii) LIMITATION. —The amount treated as qualified higher education expenses by reason of clause (i) shall not exceed— "(I) the allowance (applicable to the student) for room and board included in the cost of attendance (as defined in section 472 of the Higher Education Act of 1965 (20 U.S.C. 108711), as in effect on the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001) as determined by the eligible educational institution for such period, or "(II) if greater, the actual invoice amount the student residing in housing owned or operated by

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