Higher Education Savings Act of 1981

Higher Education Savings Act of 1981 - Amends the Internal Revenue Code to allow an income tax deduction from gross income for cash contributions made to a savings account established exclusively for the purpose of paying certain education expenses of the taxpayer or the taxpayer's child. Limits such deduction to $750 per taxable year and $15,000 for all taxable years. Excludes distribution from such accounts from gross income so long as they are used exclusively for the payment of tuition and fees required for enrollment or attendance at an institution of higher education or a postsecondary vocational school. Permits the rollover of distributions from such accounts into another education savings account, individual retirement account, individual retirement annuity, retirement bond, or eligible retirement plan. Provides that such accounts may be in existence only for 20 years. Provides a tax penalty if a distribution from such an account is not used for qualified educational expenses.