,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #afad  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #ah1 #bjac ,mr4
 ,craw=d introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to au?orize agricultural 
produc]s to e/abli% & contribute to     
tax-exempt f>m risk managem5t acc\nts4  
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,f>m ,risk ,abatem5t & ,mitigation    
,election ,act ( #bjac or ! ,,frame ,act
 ( #bjac4  #b4 ,f>m risk managem5t      
acc\nts  7a7 ,9 g5]al ,"p ,,vii (       
sub*apt] ,b ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf 7relat+ to        
additional itemiz$ d$uctions =          
individuals7 is am5d$ by r$esignat+     
section #bbd z section #bbe & by ins]t+ 
aft] section #bbc ! foll[+ new section3 
#bbd4 ,,frame acc\nts  7a7 ,d$uction    
all[$ ,9 ! case ( a qualifi$ f>m]1 !re  
%all be all[$ z a d$uction = ! taxable  
ye> an am\nt equal to ! aggregate am\nt 
paid 9 ca% dur+ su* taxable ye> by or on

 behalf ( su* individual to a ,,frame   
acc\nt ( su* individual4  7b7           
,limitation ,! am\nt all[able z a       
d$uction "u subsection 7a7 %all n exce$ 
! lea/ ( ! foll[+3  7#a7 ,! taxable     
income ( ! taxpay] = ! taxable ye> :i*  
is attributable to f>m+ & ran*+4  7#b7  
#ej1jjj4  7#c7 #ejj1jjj r$uc$ by !      
aggregate contributions ( ! taxpay] to  
all ,,frame acc\nts ( ! taxpay] = all   
taxable ye>s4  7c7 ,qualifi$ f>m] ,=    
purposes ( ?is section1 ! t]m qualifi$  
f>m] means1 ) respect to any taxable    
ye>1 any individual :o1 dur+ su* ye>--  
7#a7 0 actively engag$ 9 ! trade or     
bus9ess ( f>m+ or ran*+1 &  7#b7 has 9  
effect an agreem5t ) ! ,secret>y (      
,agriculture ) respect to ea* ,,frame   
acc\nt ( :i* ! individual is an acc\nt  
b5efici>y4  7d7 ,,frame acc\nt ,=       
purposes ( ?is section--  7#a7 ,9 g5]al 
,! t]m ,,frame acc\nt means a tru/      
creat$ or organiz$ 9 ! ,unit$ ,/ates z a
 ,,frame acc\nt exclusively = ! purpose 
( mak+ qualifi$ di/ributions1 b only if 

! writt5 gov]n+ in/rum5t creat+ ! tru/  
meets ! foll[+ requirem5ts3  7,a7 ,no   
contribution w be accept$ unless x is 9 
ca%4  7,b7 ,! tru/ee is a bank 7z def9$ 
9 section #djh7n77 or ano!r p]son :o    
demon/rates to ! satisfaction ( !       
,secret>y t ! mann] 9 :i* su* p]son w   
adm9i/] ! tru/ w be consi/5t ) !        
requirem5ts ( ?is section4  7,c7 ,!     
assets ( ! tru/ w n be comm+l$ ) o!r    
prop]ty except 9 a common tru/ fund or  
common inve/m5t fund4  7,d7 ,! int]e/ ( 
an individual 9 ! balance 9 8 acc\nt is 
non=feitable4  7#b7 ,qualifi$           
di/ribution ,! t]m qualifi$ di/ribution 
means any ( ! foll[+ am\nts paid f a    
,,frame acc\nt to ! acc\nt b5efici>y3   
7,a7 ,any di/ributions 9 a taxable ye>  
dur+ :i* ! gross income attributable to 
f>m to :i* ! ,,frame acc\nt relates is  
less ?an #ie p]c5t ( ! av]age gross     
income attributable to su* f>m = ! #e   
prec$+ taxable ye>s1 b only s mu* z does
 n exce$ su* diff]5ce4  7,b7 ,any       
di/ributions to ! ext5t su* di/ribution 

does n exce$ am\nts necess>y to protect 
! solv5cy ( ! f>m to :i* ! ,,frame      
acc\nt relates1 z det]m9$ by !          
,secret>y4  7,c7 ,any di/ributions to ! 
ext5t su* di/ributions d n exce$ am\nts 
paid or incurr$ to procure rev5ue or    
crop insurance ) respect to ! f>m to :i*
 ! ,,frame acc\nt relates4  7#c7 ,acc\nt
 b5efici>y ,! t]m acc\nt b5efici>y means
 ! individual on ^: behalf ! ,,frame    
acc\nt 0 e/abli%$4  7#d7 ,acc\nts p] f>m
 limitation ,! ,secret>y ( ,agriculture 
%all h 9 effect n m ?an #d agreem5ts =  
,,frame acc\nts ) respect to any f>m4 ,!
 ,secret>y ( ,agriculture %all by       
regulation prescribe rules prev5t+ !    
avoidance ( ! prec$+ limitation ?r\gh   
use ( multiple entities1 relat$ p>ties1 
division ( f>ms1 or de m9imis own]%ip4  
7#e7 ,o!r rules ,rules simil> to !      
foll[+ rules %all apply = purposes ( ?is
 section3  7,a7 ,section #bai7;d77#b7   
7relat+ to no d$uction = rollov]s74     
7,b7 ,section #bai7;f77#c7 7relat+ to "t
 :5 contributions deem$ made74  7,c7    

,section #djh7;g7 7relat+ to community  
prop]ty laws74  7,d7 ,section #djh7;h7  
7relat+ to cu/odial acc\nts74  7e7 ,tax 
treatm5t ( acc\nts  7#a7 ,9 g5]al ,a    
,,frame acc\nt is exempt f taxation "u  
?is subtitle unless su* acc\nt has ceas$
 to be a ,,frame acc\nt4 ,not)/&+ !     
prec$+ s5t5ce1 any su* acc\nt is subject
 to ! taxes impos$ by section #eaa      
7relat+ to imposition ( tax on unrelat$ 
bus9ess income ( *>itable1 etc4         
organizations74  7#b7 ,t]m9ation (      
acc\nts ,if ! acc\nt b5efici>y ceases to
 engage 9 ! trade or bus9ess ( f>m+ or  
ran*+--  7,a7 all ,,frame acc\nts ( su* 
individual %all cease to be su* acc\nts1
 &  7,b7 ! balance ( all su* acc\nts    
%all be treat$ z--  7i7 di/ribut$ to su*
 individual1 &  7ii7 n paid 9 a qualifi$
 di/ribution4  7f7 ,tax treatm5t (      
di/ributions  7#a7 ,9 g5]al ,any am\nt  
paid or di/ribut$ out ( a ,,frame acc\nt
 7o!r ?an a rollov] contribution        
describ$ 9 p>agraph 7#d77 %all be       
includ$ 9 gross income4  7#b7           

,additional tax on non-qualifi$         
di/ributions  7,a7 ,9 g5]al ,! tax      
impos$ by ?is *apt] on ! acc\nt         
b5efici>y = any taxable ye> 9 :i* !re is
 a paym5t or di/ribution f a ,,frame    
acc\nt ( su* b5efici>y :i* is n a       
qualifi$ di/ribution %all be increas$ by
 #bj p]c5t ( ! am\nt ( su* paym5t or    
di/ribution :i* is n a qualifi$         
di/ribution4  7,b7 ,exception =         
disability or dea? ,subp>agraph 7,a7    
%all n apply if ! paym5t or di/ribution 
is made aft] ! acc\nt b5efici>y becomes 
disabl$ )9 ! mean+ ( section #gb7m77#g7 
or dies4  7#c7 ,excess contributions    
return$ be=e due date ( return  7,a7 ,9 
g5]al ,if any excess contribution is    
contribut$ = a taxable ye> to a ,,frame 
acc\nt ( an individual1 p>agraph 7#b7   
%all n apply to di/ributions f ! ,,frame
 acc\nts ( su* individual 7to ! ext5t   
su* di/ributions d n exce$ ! aggregate  
excess contributions to all su* acc\nts 
( su* individual = su* ye>7 if--  7i7   
su* di/ribution is receiv$ by !         

individual on or be=e ! la/ day         
prescrib$ by law 7includ+ ext5sions (   
"t7 = fil+ su* individual's return = su*
 taxable ye>1 &  7ii7 su* di/ribution is
 accompani$ by ! am\nt ( net income     
attributable to su* excess contribution4
  ,any net income describ$ 9 clause 7ii7
 %all be includ$ 9 ! gross income ( !   
individual = ! taxable ye> 9 :i* x is   
receiv$4  7,b7 ,excess contribution ,=  
purposes ( subp>agraph 7,a71 ! t]m      
excess contribution means any           
contribution 7o!r ?an a rollov]         
contribution7 :i* is n d$uctible "u ?is 
section4  7#d7 ,rollov] contribution ,an
 am\nt is describ$ 9 ?is p>agraph z a   
rollov] contribution if x meets !       
requirem5ts ( subp>agraphs 7,a7 & 7,b74 
7,a7 ,9 g5]al ,= purposes ( ?is section1
 any am\nt paid or di/ribut$ f a ,,frame
 acc\nt to ! acc\nt b5efici>y %all be   
treat$ z a qualifi$ di/ribution to !    
ext5t ! am\nt receiv$ is paid into a    
,,frame acc\nt = ! b5efit ( su*         
b5efici>y n lat] ?an ! #fj? day aft] !  

day on :i* ! b5efici>y receives ! paym5t
 or di/ribution4  7,b7  ,limitation ,?is
 p>agraph %all n apply to any am\nt     
describ$ 9 subp>agraph 7,a7 receiv$ by  
an individual f a ,,frame acc\nt if1 at 
any "t dur+ ! #a-ye> p]iod end+ on ! day
 ( su* receipt1 su* individual receiv$  
any o!r am\nt describ$ 9 subp>agraph    
7,a7 f a ,,frame acc\nt :i* 0 n includ$ 
9 ! individual's gross income because ( 
! application ( ?is p>agraph4  7#e7     
,transf] ( acc\nt incid5t to divorce ,! 
transf] ( an individual's int]e/ 9 a    
,,frame acc\nt to an individual's sp\se 
or =m] sp\se "u a divorce or sep>ation  
in/rum5t describ$ 9 subp>agraph 7,a7 (  
section #ga7;b77#b7 %all n be consid]$ a
 taxable transf] made by su* individual 
not)/&+ any o!r provision ( ?is         
subtitle1 & su* int]e/ %all1 aft] su*   
transf]1 be treat$ z a ,,frame acc\nt ) 
respect to :i* su* sp\se is ! acc\nt    
b5efici>y4  7#f7 ,treatm5t aft] dea? (  
acc\nt b5efici>y  7,a7 ,treatm5t 9 case 
( individual designat$ b5efici>y ,if any

 individual acquires su* b5efici>y's    
int]e/ 9 a ,,frame acc\nt by reason (   
be+ ! designat$ b5efici>y ( su* acc\nt  
at ! dea? ( ! acc\nt b5efici>y1 su*     
,,frame acc\nt %all be treat$ z if su*  
individual 7 ! acc\nt b5efici>y4  7,b7  
,o!r cases  7i7 ,9 g5]al ,if1 by reason 
( ! dea? ( ! acc\nt b5efici>y1 any p]son
 acquires ! acc\nt b5efici>y's int]e/ 9 
a ,,frame acc\nt 9 a case to :i*        
subp>agraph 7,a7 does n apply--  7,i7   
su* acc\nt %all cease to be a ,,frame   
acc\nt z ( ! date ( dea?1 &  7,,ii7 an  
am\nt equal to ! fair m>ket value ( !   
assets 9 su* acc\nt on su* date %all be 
includ$ if su* p]son is n ! e/ate ( su* 
b5efici>y1 9 su* p]son's gross income = 
! taxable ye> :i* includes su* date1 or 
if su* p]son is ! e/ate ( su* b5efici>y1
 9 su* b5efici>y's gross income = ! la/ 
taxable ye> ( su* b5efici>y4  7ii7      
,d$uction = e/ate taxes ,an appropriate 
d$uction %all be all[$ "u section       
#fia7;c7 to any p]son 7o!r ?an ! dec$5t 
or ! dec$5t's sp\se7 ) respect to am\nts

 includ$ 9 gross income "u clause 7i7 by
 su* p]son4  7g7 ,reports ,! ,secret>y  
may require ! tru/ee ( a ,,frame acc\nt 
to make su* reports reg>d+ su* acc\nt to
 ! ,secret>y & to ! acc\nt b5efici>y )  
respect to contributions1 di/ributions1 
& su* o!r matt]s z ! ,secret>y det]m9es 
appropriate4 ,! reports requir$ by ?is  
subsection %all be fil$ at su* "t & 9   
su* mann] & furni%$ to su* individuals  
at su* "t & 9 su* mann] z may be requir$
 by ! ,secret>y4  4  7b7 ,d$uction all[$
 :e!r or n individual itemizes o!r      
d$uctions ,subsection 7a7 ( section #fb 
( su* ,code is am5d$ by ins]t+ aft]     
p>agraph 7#ba7 ! foll[+ new p>agraph3   
7#bb7 ,,frame acc\nts ,! d$uction all[$ 
by section #bbd4  4  7c7 ,tax on excess 
contributions ,section #digc ( su* ,code
 7relat+ to tax on excess contributions 
to c]ta9 tax-favor$ acc\nts & annuities7
 is am5d$--  7#a7 by /rik+ or at ! end (
 subsection 7a77#d71 by ins]t+ or at !  
end ( subsection 7a77#e71 & by ins]t+   
aft] subsection 7a77#e7 ! foll[+ new    

p>agraph3  7#f7 a ,,frame acc\nt 7)9 !  
mean+ ( section #bbd7;d771  1 &  7#b7 by
 add+ at ! end ! foll[+ new subsection3 
7h7 ,excess contributions to ,,frame    
acc\nts ,= purposes ( ?is section1 9 !  
case ( ,,frame acc\nts 7)9 ! mean+ (    
section #bbd7;d771 ! t]m excess         
contribution means ! sum (--  7#a7 !    
aggregate am\nt contribut$ = ! taxable  
ye> to ! acc\nts 7o!r ?an rollov]       
contributions describ$ 9 section        
#bbd7;f77#d77 :i* is n all[able z a     
d$uction "u section #bbd = su* ye>1 &   
7#b7 ! am\nt det]m9$ "u ?is subsection =
 ! prec$+ taxable ye>1 r$uc$ by ! sum   
(--  7,a7 ! di/ributions out ( ! acc\nts
 ) respect to :i* additional tax 0      
impos$ "u section #bbd7;f77#b71 &  7,b7 
! excess 7if any7 (--  7i7 ! maximum    
am\nt all[able z a d$uction "u section  
#bbd7;b7 = ! taxable ye>1 ov]  7ii7 !   
am\nt contribut$ to ! acc\nts = !       
taxable ye>4  ,= purposes ( ?is         
subsection1 any contribution :i* is     
di/ribut$ out ( ! ,,frame acc\nt 9 a    

di/ribution to :i* section #bbd7;f77#c7 
applies %all be treat$ z an am\nt n     
contribut$4  4  7d7 ,tax on prohibit$   
transactions  7#a7 ,section #dige7;c7 ( 
su* ,code 7relat+ to tax on prohibit$   
transactions7 is am5d$ by add+ at ! end 
! foll[+ new p>agraph3  7#g7 ,special   
rule = ,,frame acc\nts ,an individual = 
^: b5efit a ,,frame acc\nt 7)9 ! mean+ (
 section #bbd7;d77 is e/abli%$ %all be  
exempt f ! tax impos$ by ?is section )  
respect to any transaction conc]n+ su*  
acc\nt 7:i* w\ld o!rwise be taxable "u  
?is section7 if1 ) respect to su*       
transaction1 ! acc\nt ceases to be a    
,,frame acc\nt by reason ( ! application
 ( section #bbd7;e77#b7 to su* acc\nt4  
4  7#b7 ,section #dige7;e77#a7 ( su*    
,code is am5d$ by r$esignat+            
subp>agraphs 7,f7 & 7,g7 z subp>agraphs 
7,g7 & 7,h71 respectively1 & by ins]t+  
aft] subp>agraph 7,e7 ! foll[+ new      
subp>agraph3  7,f7 a ,,frame acc\nt     
describ$ 9 section #bbd7;d71  4  7e7    
,failure ,to provide reports on ,,frame 

acc\nts ,section #ffic7;a77#b7 ( su*    
,code 7relat+ to reports7 is am5d$ by   
r$esignat+ subp>agraphs 7,d7 & 7,e7 z   
subp>agraphs 7,e7 & 7,f71 respectively1 
& by ins]t+ aft] subp>agraph 7,c7 !     
foll[+ new subp>agraph3  7,d7 section   
#bbd7;g7 7relat+ to ,,frame acc\nts71  4
  7f7 ,cl]ical am5dm5t ,! table (       
sections = "p ,,vii ( sub*apt] ,b (     
*apt] #a ( su* ,code is am5d$ by /rik+ !
 la/ item & ins]t+ ! foll[+3  ,sec4     
#bbd4 ,,frame acc\nts4 ,sec4 #bbe4      
,cross ref]5ce4  4  7g7 ,effective date 
,! am5dm5ts made by ?is section %all    
apply to taxable ye>s beg9n+ aft] ! date
 ( ! enactm5t ( ?is ,act4  #c4 ,,frame  
contribution cr$it  7a7 ,9 g5]al ,subp>t
 ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a (
 ! ,int]nal ,rev5ue ,code ( #aihf is    
am5d$ by add+ at ! end ! foll[+ new     
section3  #de,s4 ,,frame contribution   
cr$it  7a7 ,g5]al rule ,= purposes (    
section #ch1 9 ! case ( a qualifi$ f>m] 
7z def9$ 9 section #bbd7;c771 ! ,,frame 
contribution cr$it det]m9$ "u ?is       

section = any taxable ye> is an am\nt   
equal to ! applicable p]c5tage ( !      
taxpay]'s contributions to any ,,frame  
acc\nt ( ! taxpay]4  7b7 ,applicable    
p]c5tage ,= purposes ( subsection 7a71 !
 applicable p]c5tage is--  7#a7 9 ! case
 ( ! taxable ye> dur+ :i* ! fir/ ,,frame
 acc\nt ( ! taxpay] is e/abli%$1 & !    
#bnd & #crd taxable ye>s !reaft]1 #aj   
p]c5t1  7#b7 9 ! case ( ! #d? ?r\gh #e? 
taxable ye>s !reaft]1 #e p]c5t1 &  7#c7 
9 ! case ( ! #g? ?r\gh #i? taxable ye>s 
!reaft]1 #c4e p]c5t4  7c7 ,limitation   
,only contributions = :i* a d$uction is 
all[$ "u section #bbd %all be tak5 into 
acc\nt "u ?is section4  4  7b7 ,cr$it   
made "p ( g5]al bus9ess cr$it           
,subsection 7b7 ( section #ch ( su*     
,code is am5d$ by /rik+ plus at ! end ( 
p>agraph 7#ce71 by /rik+ ! p]iod at !   
end ( p>agraph 7#cf7 & ins]t+ 1 plus1 & 
by add+ at ! end ! foll[+ new p>agraph3 
7#cg7 ! ,,frame contribution cr$it      
det]m9$ "u section #de,s7a74  4  7c7    
,cl]ical am5dm5t ,! table ( sections =  

subp>t ,d ( "p ,,iv ( sub*apt] ,a (     
*apt] #a ( su* ,code is am5d$ by add+ at
 ! end ! foll[+ new item3  ,sec4 #de,s4 
,,frame contribution cr$it4  4  7d7     
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4