Savers and Investors Act of 1985

Summary

Savers and Investors Act of 1985 - Amends the Internal Revenue Code to provide that any tax deferred account is exempt from taxation except for the taxes imposed on unrelated business income. Defines "tax deferred account" as a trust created for the exclusive benefit of an individual or his beneficiaries but only if: (1) no contributions other than cash are accepted; (2) the trustee is a bank or other person satisfactory to the Secretary of the Treasury; (3) no part of the trust funds are invested in life insurance contracts; (4) the interest of the investor in the account is nonforfeitable; and (5) the assets will not be commingled with other property except in a common trust fund or common investment fund. Provides that earnings distributed from tax deferred accounts are taxed as ordinary income to the distributee. Permits the rollover from one tax deferred account to another tax deferred account without the imposition of tax, provided such transaction occurs not later than the 60th day after the distribution. Sets forth special rules concerning the termination of the account in certain situations, the pledging of the account as security, divorce, and the basis in the account after death. Requires the trustee of a tax deferred account to make certain reports as required by the Secretary of the Treasury.

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1 official file

• Introduced in Senate

  summary · EN · 21 November 1985

  Open at official source

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