Education Savings Act of 1992

Summary

Education Savings Act of 1992 - 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 24 at an institution of higher education or a vocational school. Requires any account to be treated as an individual retirement account after the beneficiary attains age 25. 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. Excludes employer contributions to education savings accounts from social security and unemployment taxes. Imposes penalty taxes in connection with excess contributions or prohibited transactions associated with an account. Directs the Secretary of Education to make matching contributions (equal to a percentage formula) to eligible institutions for amounts paid from education savings accounts. Repeals the income limitations on the exclusion for savings bonds used to pay higher education expenses where the proceeds exceed such expenses.

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

Timeline

1. 9 July 1992

   Introduced

   Referred to the House Committee on Education and Labor.

   Source: IntroReferral

2. 9 July 1992

   Introduced

   Introduced in House

   Source: IntroReferral

3. 9 July 1992

   Introduced

   Introduced in House

   Source: IntroReferral

4. 25 August 1992

   Referred

   Referred to the Subcommittee on Postsecondary Education.

   Source: Committee

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 · 9 July 1992

  Open at official source

Sponsors

• Rep. Chandler, Rod D. [R-WA-8] · R · Sponsor
• · hsed00 · Standing
• · hswm00 · Standing

Related records

No cross-record relationships stored yet.