Savings Accounts Are Valuable for Everyone Act of 2000

Summary

Savings Accounts Are Valuable for Everyone Act of 2000 - Title I: Qualified Individual Development Accounts for Low-Income Workers - Allows any qualified financial institution or qualified nonprofit organization to establish one or more qualified individual development account (IDA) programs which meet the requirements of this Act. Requires each qualified IDA program to consist of: (1) an IDA to which an eligible individual contributes money; and (2) a tax-exempt parallel account for receiving matching funds. (Sec. 101) Limits qualified IDA programs to those in which at least one third of the IDAs under such program are owned by eligible individuals each of whom is a member of a household whose gross income does not exceed 50 percent of the area median income. (Sec. 102) Sets forth procedures for opening an IDA and qualifying for IDA matching funds. Requires completion of a financial education course before holders of IDAs are eligible to withdraw matching funds to pay for qualified expenses. (Sec. 103) Provides that except in the case of a qualified rollover, individual contributions to an IDA will not be accepted for the taxable year in excess of the lesser of the following: (1) $2,000; or (2) an amount equal to the compensation includible in the individual's gross income for such taxable year. (Sec. 104) Requires the qualified financial institution or qualified nonprofit organization to deposit all matching funds for each IDA into a parallel account, which shall earn not less than the market rate of interest. Requires the qualified financial institution or qualified nonprofit organization to deposit not less than quarterly into the parallel account with respect to each eligible individual: (1) a dollar-for-dollar match for the first $500 the eligible individual contributes into an IDA with respect to any taxable year; and (2) any matching funds provided by State, local, or private sources in accordance to the matching ratio set by those sources. (Sec. 105) Outlines withdrawal procedures for qualified (higher education, first-time home-buyer, business capitalization, rollovers) and for nonqualified expenses. Excludes from an eligible individual's gross income any amount withdrawn from a parallel account. (Sec. 107) Authorizes appropriations for monitoring IDA programs. (Sec. 108) Disregards funds in parallel accounts of IDA account program participants for purposes of certain means-tested Federal programs. Title II: Qualified Individual Development Account Program Investment Credits - Amends the Internal Revenue Code with respect to a qualified taxpayer that is: (1) a qualified financial institution; or (2) neither a qualified financial institution nor the individual owning an IDA. Allows for such a qualified taxpayer a credit (determined according to a specified formula) against both the income tax (with certain exceptions) and the employer's excise tax for old age, survivors, and disability insurance (OASDI) for matching contributions to an eligible individual's qualified IDA program investment for the taxable year. (Sec. 205) Directs the Secretary of the Treasury to transfer from the general fund of the Treasury to the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund amounts equivalent to the reduction in the employer's OASDI taxes by reason of the tax credit relating to the qualified IDA program investment credit. (Sec. 202) Prohibits qualified financial institutions which establish qualified IDA programs from receiving credit for funding, administration, and education expenses under any test contained in regulations for the Community Reinvestment Act of 1977 for those activities and related expenses and taken into account for purposes of the qualified IDA program investment tax credit. (Sec. 203) Amends the Internal Revenue Code to provide for designation of earned income tax credit payments for deposit to IDAs. Title III: Modification of IRA Contribution Limit - Amends the Internal Revenue Code to increase from $2,000 to $3,500 the annual limit on deductible IRA contributions.

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Timeline

1. 15 June 2000

   Introduced

   Read twice and referred to the Committee on Finance.

   Source: IntroReferral

2. 15 June 2000

   Introduced

   Sponsor introductory remarks on measure. (CR S5264-5267)

   Source: IntroReferral

3. 15 June 2000

   Introduced

   Introduced in Senate

   Source: IntroReferral

4. 30 October 2000

   Introduced

   Sponsor introductory remarks on measure. (CR S11359)

   Source: IntroReferral

Votes

No vote records are attached yet.

Versions

• Introduced in Senate · 15 June 2000 · Official file

Documents

3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 15 June 2000

  ViewDownloadOpen at official source

• Introduced in Senate (PDF)

  Introduced in Senate · EN · 15 June 2000

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 15 June 2000

  Open at official source

Sponsors

• Sen. Landrieu, Mary L. [D-LA] · D · Sponsor
• · ssfi00 · Standing

Related records

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