H.R.4078 - To amend the Internal Revenue Code of 1986 to create Lifetime Savings Accounts.108th Congress (2003-2004)
|Sponsor:||Rep. Johnson, Sam [R-TX-3] (Introduced 03/31/2004)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 03/31/2004 Referred to the House Committee on Ways and Means. (All Actions)|
This bill has the status Introduced
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Summary: H.R.4078 — 108th Congress (2003-2004)All Information (Except Text)
Introduced in House (03/31/2004)
Amends the Internal Revenue Code to create a tax-exempt trust to be known as a "Lifetime Savings Account" for the benefit of an individual taxpayer or his beneficiaries. Allows an individual taxpayer to make cash contributions up to $5,000 each year to such trusts. Prohibits: (1) investment of trust assets in life insurance contracts; and (2) commingling of trust assets with any other property except in a common trust or investment fund. Provides for an annual cost-of-living adjustment to the contribution amount.
Excludes from gross income distributions from such a trust. Allows tax-free rollovers to a trust from: (1) another account of the trust beneficiary if the rollover from such other account is completed within 60 days of the date of distribution; (2) from a Lifetime Savings Account of the spouse of the trust beneficiary if the rollover from the spouse's account is completed within 60 days of the date of distribution; (3) from a qualified state tuition plan or a Coverdell education savings account before January 1, 2006.