S.386 - A bill to amend the Internal Revenue Code of 1986 to provide for the tax-free treatment of education savings accounts established through certain State programs, and for other purposes.104th Congress (1995-1996)
|Sponsor:||Sen. McConnell, Mitch [R-KY] (Introduced 02/10/1995)|
|Committees:||Senate - Finance|
|Latest Action:||Senate - 02/10/1995 Read twice and referred to the Committee on Finance. (All Actions)|
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Summary: S.386 — 104th Congress (1995-1996)All Information (Except Text)
Introduced in Senate (02/10/1995)
Amends the Internal Revenue Code to exclude from gross income any qualified education savings account. Describes such account as a trust created pursuant to a State educational savings plan and used exclusively to pay the higher education expenses of the designated beneficiary. Declares such accounts to be exempt from tax.
Treats such State plans as tax-exempt organizations and treats contributions to such plans as charitable contributions.
Declares that contributions to such accounts are not subject to the gift tax.
Imposes penalty taxes in connection with reporting requirements or prohibited transactions associated with an account.
Excludes distributions from such accounts when determining support for dependents.