Summary: H.R.6 — 104th Congress (1995-1996)All Information (Except Text)

There is one summary for H.R.6. Bill summaries are authored by CRS.

Shown Here:
Introduced in House (01/04/1995)

American Dream Restoration Act - Amends the Internal Revenue Code to allow individuals a tax credit of $500 multiplied by the number of qualifying children who have not attained age 18. Places limitations on such credit based on: (1) taxpayer adjusted gross incomes over $200,000; and (2) social security tax payments. Provides an inflation adjustment for such credit and the taxpayer adjusted gross income amount.

Allows a tax credit for qualified married couples equal to a dollar amount determined by the Secretary of the Treasury to reduce revenues by $2 billion. Describes such couples as those who would be required to pay more in income taxes because they are married than they would be required to pay if they were not married.

Establishes individual retirement plans which can be designated as American Dream Savings Accounts. Disallows a tax deduction for amounts contributed to such accounts. Limits contributions to such accounts to the lesser of $2,000, or compensation includible in an individual's gross income for a taxable year ($4,000 in the case of certain married individuals). Provides an inflation adjustment on such amounts. Permits contributions to be made after age 70.5.

Excludes distributions from such accounts from gross income and makes the penalty on early distributions inapplicable.

Designates qualified distributions as those: (1) made after the individual attains age 59.5; (2) made to a beneficiary on or after the death of the individual; (3) attributable to the individual being disabled; and (4) qualified as special purpose distributions. Prohibits qualified distributions from being made within the five-year period since the account began.

Describes special purpose distributions as those for: (1) qualified first-time homebuyers; (2) qualified higher education expenses; and (3) qualified medical expenses, including long-term care insurance.