Amends the Internal Revenue Code to allow an individual income tax deduction for contributions to a savings account established to pay the educational expenses (tuition, supplies, meals, and lodging) of the taxpayer's child or certain other relatives at an institution of higher education or a vocational school. Limits the deduction to $2,000 annually (adjusted for inflation) for each account. 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 30.
Imposes penalties for excess contributions or prohibited transactions associated with an account.
Provides for an from annual contribution limitations for distributions from education savings accounts into individual retirement accounts.
Excludes from gross income distributions from individual retirement accounts into education savings accounts.
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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