Savings and Investment Act of 1979

Savings and Investment Act of 1979 - Amends the Internal Revenue Code to permit individual taxpayers to establish tax-free rollover bank accounts. Defines a "tax-free rollover account" as a trust established for the exclusive benefit of the taxpayer or his beneficiaries to which cash contributions or stock and securities of domestic corporations are made and reinvested at the discretion of the trustee or the individual taxpayer. Provides that interest or dividends accruing to the account shall not be taxed until distributed to the taxpayer.

Exempts a rollover account trust from income taxation as an entity.

Specifies that the character of income as capital gain or ordinary income in the hands of the individual taxpayer who receives a distribution from a rollover account shall be the same as the character of such income while accumulated in a rollover account trust. Requires the trustee of a rollover account trust to maintain separate accounts for amounts designated as contribution to capital, capital gain, and ordinary income (e.g. interest, dividend, net short-term capital gain). Specifies that distributions from a rollover account shall be treated as made from first, the ordinary income fund, second, the capital gain fund, and third, the capital fund.

Treats any transfer or pledge of account funds as security for a loan as a deemed withdrawal from the account, but does not require such treatment if fund are transferred to a spouse pursuant to a divorce decree.

Limits an individual taxpayer to the establishment of one rollover account trust at a time.

Requires the trustee of a rollover account trust to file an annual informational return containing such information as the Secretary of the Treasury may require.