H.R.769 - To amend the Internal Revenue Code of 1986 to provide for the establishment of, and the deduction of contributions to, education savings accounts.104th Congress (1995-1996)
|Sponsor:||Rep. Gillmor, Paul E. [R-OH-5] (Introduced 02/01/1995)|
|Committees:||House - Ways and Means|
|Latest Action:||04/05/1996 Sponsor introductory remarks on measure. (All Actions)|
This bill has the status Introduced
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Summary: H.R.769 — 104th Congress (1995-1996)All Information (Except Text)
Introduced in House (02/01/1995)
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.
Permits an exclusion from the gross income of the contributor or the beneficiary of account distributions used to pay educational expenses of the latter.
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.
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 annual contribution limitations distributions from education savings accounts into individual retirement accounts.
Excludes from gross income distributions from individual retirement accounts into education savings accounts.