To amend the Internal Revenue Code of 1986 to provide for the establishment of, and the deduction of contributions to, education savings accounts to assist families in saving for their childrens' education.

Summary

Amends the Internal Revenue Code to allow an individual income tax deduction for up to $2,000 annually of contributions to a savings account established to pay the educational expenses (tuition, supplies, meals, and lodging) of any individual under age 19 at an institution of higher education or a vocational school. Disallows the deduction for contributions to an account maintained for any individual aged 19 or older. Requires any account balance to be distributed after the beneficiary attains age 27. Excludes from gross income any account distributions that are used to pay educational expenses of the eligible beneficiary. Exempts an account from taxation (except for the tax on unrelated business income of a charitable organization) unless a contributor or the beneficiary engages in specified prohibited transactions in connection with it. Imposes a ten percent surtax on distributions not used for educational purposes. Requires the account trustee to report to the Secretary of the Treasury and to the account's beneficiary concerning the account. Imposes a penalty for failure to report. Allows taxpayers who do not otherwise itemize deductions to deduct for contributions to an education savings account. Imposes penalty taxes in connection with excess contributions or prohibited transactions associated with an account.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 20 November 1991

   Introduced

   Referred to the House Committee on Ways and Means.

   Source: IntroReferral

2. 20 November 1991

   Introduced

   Introduced in House

   Source: IntroReferral

3. 20 November 1991

   Introduced

   Introduced in House

   Source: IntroReferral

Votes

No vote records are attached yet.

Versions

• Introduced in House · undated · Official file

Documents

2 official files

• Introduced in House (text)

  Introduced in House · EN

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 20 November 1991

  Open at official source

Sponsors

• Rep. Lipinski, William O. [D-IL-5] · D · Sponsor
• Rep. Kolter, Joseph P. [D-PA-4] · D · Cosponsor
• Rep. Horton, Frank J. [R-NY-34] · R · Cosponsor
• Rep. Collins, Cardiss [D-IL-7] · D · Cosponsor
• Del. Norton, Eleanor Holmes [D-DC-At Large] · D · Cosponsor
• Rep. Ewing, Thomas W. [R-IL-15] · R · Cosponsor
• Rep. Lewis, Thomas F. [R-FL-12] · R · Cosponsor
• · hswm00 · Standing

Related records

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