H.R.3582 - To amend the Internal Revenue Code of 1986 to provide for the establishment of, and the deduction of contributions to, education savings accounts.101st Congress (1989-1990)
|Sponsor:||Rep. Gillmor, Paul E. [R-OH-5] (Introduced 11/02/1989)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 11/02/1989 Referred to the House Committee on Ways and Means. (All Actions)|
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Summary: H.R.3582 — 101st Congress (1989-1990)All Information (Except Text)
Introduced in House (11/02/1989)
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 $1,500 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.
Excludes from gross income any account distributions that are: (1) used to pay educational expenses of the eligible beneficiary; or (2) transferred within 60 days to an individual retirement account.
Exempts an account from taxation (except for the tax on unrelated business income of a charitable organization), unless a contributor or the beneficiary engages in specified prohibited transactions in connection with it.
Imposes a ten percent surtax on distributions not used for educational purposes.
Requires the account trustee to report to the Secretary of the Treasury and to the account's beneficiary concerning the account. Imposes a penalty for failure to report.
Allows taxpayers who do not otherwise itemize deductions to deduct for contributions to an education savings account.
Imposes penalty taxes in connection with excess contributions or prohibited transactions associated with an account.
Exempts from contribution limitations any distributions from education savings accounts into individual retirement accounts. Excludes from gross income distributions from individual retirement accounts into education savings accounts.