,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #bifd  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,augu/ #a1 #bjac ,mr4 
,pitts introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to e/abli% & provide = !  
treatm5t ( ,individual ,developm5t      
,acc\nts1 & = o!r purposes4  #a4 ,%ort  
title1 etc  7a7 ,9 g5]al ,?is ,act may  
be cit$ z ! ,sav+s = ,work+ ,families   
,act ( #bjac4  7b7 ,table ( cont5ts ,!  
table ( cont5ts = ?is ,act is z foll[s3 
,sec4 #a4 ,%ort title1 etc4 ,sec4 #b4   
,purposes4 ,sec4 #c4 ,def9itions4 ,sec4 
#d4 ,/ructure & adm9i/ration ( qualifi$ 
,individual ,developm5t ,acc\nt         
programs4 ,sec4 #e4 ,proc$ures = op5+ & 
ma9ta9+ an ,individual ,developm5t      
,acc\nt & qualify+ = mat*+ funds4 ,sec4 
#f4 ,deposits by qualifi$ ,individual   
,developm5t ,acc\nt programs4 ,sec4 #g4 
,)drawal proc$ures4 ,sec4 #h4           
,c]tification & t]m9ation ( qualifi$    
,individual ,developm5t ,acc\nt         
programs4 ,sec4 #i4 ,report+1 monitor+1 

& evaluation4 ,sec4 #aj4 ,au?orization (
 appropriations4 ,sec4 #aa4 ,mat*+ funds
 = ,individual ,developm5t ,acc\nts     
provid$ ?r\gh a tax cr$it = qualifi$    
f9ancial in/itutions4 ,sec4 #ab4 ,acc\nt
 funds disreg>d$ = purposes ( c]ta9     
means-te/$ ,f$]al programs4  #b4        
,purposes ,! purposes ( ?is ,act are to 
provide = ! e/abli%m5t ( individual     
developm5t acc\nt programs t w--  7#a7  
provide individuals & families ) limit$ 
means an opportunity to accumulate      
assets & to ent] ! f9ancial ma9/ream1   
7#b7 promote education1 home[n]%ip1 & ! 
developm5t ( small bus9esses1  7#c7     
/abilize families & build communities1 &
  7#d7 support cont9u$ ,unit$ ,/ates    
economic expansion4  #c4 ,def9itions ,z 
us$ 9 ?is ,act3  7#a7 ,eligible         
individual  7,a7 ,9 g5]al ,! t]m        
eligible individual means1 ) respect to 
any taxable ye>1 an individual :o--  7i7
 has atta9$ ! age ( #ah b n ! age ( #fa 
z ( ! la/ day ( su* taxable ye>1  7ii7  
is a citiz5 or lawful p]man5t resid5t   

7)9 ! mean+ ( section #ggja7;b77#f7 ( ! 
,int]nal ,rev5ue ,code ( #aihf7 ( !     
,unit$ ,/ates z ( ! la/ day ( su*       
taxable ye>1  7iii7 0 n a /ud5t 7z def9$
 9 section #aeb7;f77#b7 ( su* ,code7 = !
 imm$iately prec$+ taxable ye>1  7iv7 is
 n an individual ) respect to :om a     
d$uction "u section #aea ( su* ,code is 
all[able to ano!r taxpay] = a taxable   
ye> ( ! o!r taxpay] end+ dur+ !         
imm$iately prec$+ taxable ye> ( !       
individual1  7v7 is n a taxpay] describ$
 9 subsection 7c71 7d71 7e71 or 7f7 (   
section #fdjb ( su* ,code = ! imm$iately
 prec$+ taxable ye>1  7vi7 is n a       
taxpay] describ$ 9 section #a7;d7 ( su* 
,code = ! imm$iately prec$+ taxable ye>1
 &  7vii7 is a taxpay] ! modifi$ adju/$ 
gross income ( :om = ! imm$iately prec$+
 taxable ye> does n exce$--  7,i7       
#bj1jjj1 9 ! case ( a taxpay] describ$ 9
 section #a7;c7 ( su* ,code1  7,,ii7    
#cj1jjj1 9 ! case ( a taxpay] describ$ 9
 section #a7;b7 ( su* ,code1 &  7,,iii7 
#dj1jjj1 9 ! case ( a taxpay] describ$ 9

 section #a7;a7 ( su* ,code4  7,b7      
,inflation adju/m5t  7i7 ,9 g5]al ,9 !  
case ( any taxable ye> beg9n+ aft]      
#bjad1 ea* doll> am\nt ref]r$ to 9      
subp>agraph 7,a77vii7 %all be increas$  
by an am\nt equal to--  7,i7 su* doll>  
am\nt1 multipli$ by  7,,ii7 ! co/-(-liv+
 adju/m5t det]m9$ "u section            
7#a77;f77#c7 ( ! ,int]nal ,rev5ue ,code 
( #aihf = ! cal5d> ye> 9 :i* ! taxable  
ye> beg9s1 by sub/itut+ #bjac = #aiib4  
7ii7 ,r\nd+ ,if any am\nt z adju/$ "u   
clause 7i7 is n a multiple ( #ej1 su*   
am\nt %all be r\nd$ to ! ne>e/ multiple 
( #ej4  7,c7 ,modifi$ adju/$ gross      
income ,= purposes ( subp>agraph        
7,a77v71 ! t]m modifi$ adju/$ gross     
income means adju/$ gross income--  7i7 
det]m9$ )\t reg>d to sections #hf1 #hic1
 #iaa1 #ica1 & #icc ( ! ,int]nal ,rev5ue
 ,code ( #aihf1 &  7ii7 increas$ by !   
am\nt ( int]e/ receiv$ or accru$ by !   
taxpay] dur+ ! taxable ye> :i* is exempt
 f tax4  7#b7 ,individual ,developm5t   
,acc\nt ,! t]m ,individual ,developm5t  

,acc\nt means an acc\nt e/abli%$ = an   
eligible individual z "p ( a qualifi$   
individual developm5t acc\nt program1 b 
only if ! writt5 gov]n+ in/rum5t creat+ 
! acc\nt meets ! foll[+ requirem5ts3    
7,a7 ,! own] ( ! acc\nt is ! individual 
= :om ! acc\nt 0 e/abli%$4  7,b7 ,no    
contribution w be accept$ unless x is 9 
ca%1 &1 except 9 ! case ( any qualifi$  
rollov]1 contributions w n be accept$ = 
! taxable ye> 9 excess ( #a1ejj on      
behalf ( any individual4  7,c7 ,! tru/ee
 ( ! acc\nt is a qualifi$ f9ancial      
in/itution4  7,d7 ,! assets ( ! acc\nt w
 n be comm+l$ ) o!r prop]ty except 9 a  
common tru/ fund or common inve/m5t     
fund4  7,e7 ,except z provid$ 9 section 
#g7;b71 any am\nt 9 ! acc\nt may be paid
 out only = ! purpose ( pay+ ! qualifi$ 
exp5ses ( ! acc\nt own]4  7#c7 ,p>allel 
,acc\nt ,! t]m p>allel acc\nt means a   
sep>ate1 p>allel individual or pool$    
acc\nt = all mat*+ funds & e>n+s d$icat$
 to an ,individual ,developm5t ,acc\nt  
own] z "p ( a qualifi$ individual       

developm5t acc\nt program1 ! tru/ee (   
:i* is a qualifi$ f9ancial in/itution4  
7#d7 ,qualifi$ f9ancial in/itution  7,a7
 ,9 g5]al ,! t]m qualifi$ f9ancial      
in/itution means any p]son au?oriz$ to  
be a tru/ee ( any individual retirem5t  
acc\nt "u section #djh7;a77#b7 ( !      
,int]nal ,rev5ue ,code ( #aihf4  7,b7   
,rule ( con/ruction  7i7 ,9 g5]al ,no?+ 
9 ?is p>agraph %all be con/ru$ z prev5t+
 a p]son describ$ 9 subp>agraph 7,a7 f  
collaborat+ ) #a or m qualifi$ nonpr(it 
organizations or ,indian tribes to c>ry 
out an individual developm5t acc\nt     
program e/abli%$ "u section #d4  7ii7   
,qualifi$ nonpr(it organization ,! t]m  
qualifi$ nonpr(it organization means--  
7,i7 any organization describ$ 9 section
 #eja7;c77#c7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf & exempt f taxation "u section 
#eja7;a7 ( su* ,code1  7,,ii7 any       
community developm5t f9ancial in/itution
 c]tifi$ by ! ,community ,developm5t    
,f9ancial ,in/itution ,fund1  7,,iii7   
any cr$it union *>t]$ "u ,f$]al or ,/ate

 law1 or  7,,iv7 any public h\s+ ag5cy z
 def9$ 9 section #c7;b77#f7 ( ! ,unit$  
,/ates ,h\s+ ,act ( #aicg 7#db ,u4,s4,c4
 #adcg;a7b77#f774  7iii7 ,indian tribe  
,! t]m ,indian tribe means any ,indian  
tribe z def9$ 9 section #d7ab7 ( !      
,native ,am]ican ,h\s+ ,assi/ance &     
,self-,det]m9ation ,act ( #aiif 7#be    
,u4,s4,c4 #dajc7ab771 & includes any    
tribally designat$ h\s+ entity 7z def9$ 
9 section #d7ba77 ( su* ,act 7#be       
,u4,s4,c4 #dajc7ba771 tribal subsidi>y1 
subdivision1 or o!r :olly own$ tribal   
entity4  7#e7 ,qualifi$ ,individual     
,developm5t ,acc\nt program ,! t]m      
qualifi$ individual developm5t acc\nt   
program means a program e/abli%$ ^u     
approval ( ! ,secret>y "u section #d    
aft] ,decemb] #ca1 #bjac1 "u :i*--  7,a7
 ,individual ,developm5t ,acc\nts &     
p>allel acc\nts are held 9 tru/ by a    
qualifi$ f9ancial in/itution1 &  7,b7   
additional activities det]m9$ by !      
,secret>y1 9 consultation ) ! ,secret>y 
( ,heal? & ,human ,s]vices1 z necess>y  

to responsibly develop & adm9i/]        
acc\nts1 includ+ recruit+1 provid+      
f9ancial education & o!r tra9+ to       
,acc\nt own]s1 & regul> program         
monitor+1 are c>ri$ out by ! qualifi$   
f9ancial in/itution4  7#f7 ,qualifi$    
exp5se di/ribution  7,a7 ,9 g5]al ,! t]m
 qualifi$ exp5se di/ribution means any  
am\nt paid 7includ+ ?r\gh electronic    
paym5ts7 or di/ribut$ out ( an          
,individual ,developm5t ,acc\nt or a    
p>allel acc\nt e/abli%$ = an eligible   
individual if su* am\nt--  7i7 is us$   
exclusively to pay ! qualifi$ exp5ses ( 
! ,individual ,developm5t ,acc\nt own]  
or su* own]'s sp\se or dep5d5ts1  7ii7  
is paid by ! qualifi$ f9ancial          
in/itution--  7,i7 except z o!rwise     
provid$ 9 ?is clause1 directly to !     
unrelat$ ?ird p>ty to :om ! am\nt is    
due1  7,,ii7 9 ! case ( any qualifi$    
rollov]1 directly to ano!r ,individual  
,developm5t ,acc\nt & p>allel acc\nt1 or
  7,,iii7 9 ! case ( a qualifi$ f9al    
di/ribution1 directly to ! sp\se1       

dep5d5t1 or o!r nam$ b5efici>y ( !      
deceas$ ,acc\nt own]1 &  7iii7 is paid  
aft] ! ,acc\nt own] has complet$ a      
f9ancial education c\rse if requir$ "u  
section #e7;b74  7,b7 ,qualifi$ exp5ses 
7i7 ,9 g5]al ,! t]m qualifi$ exp5ses    
means any ( ! foll[+ exp5ses approv$ by 
! qualifi$ f9ancial in/itution3  7,i7   
,qualifi$ high] education exp5ses4      
7,,ii7 ,qualifi$ fir/-"t homebuy] co/s4 
7,,iii7 ,qualifi$ bus9ess capitalization
 or expansion co/s4  7,,iv7 ,qualifi$   
rollov]s4  7,v7 ,qualifi$ f9al          
di/ribution4  7ii7 ,qualifi$ high]      
education exp5ses  7,i7 ,9 g5]al ,! t]m 
qualifi$ high] education exp5ses has !  
mean+ giv5 su* t]m by section           
#ebi7;e77#c7 ( ! ,int]nal ,rev5ue ,code 
( #aihf1 det]m9$ by treat+ ! ,acc\nt    
own]1 ! own]'s sp\se1 or "o or m ( !    
own]'s dep5d5ts z a designat$ b5efici>y1
 & r$uc$ z provid$ 9 section            
#be;,a7g77#b7 ( su* ,code4  7,,ii7      
,coord9ation ,) o!r b5efits ,! am\nt (  
exp5ses :i* may be tak5 into acc\nt =   

purposes ( section #ace1 #ebi1 or #ecj (
 su* ,code = any taxable ye> %all be    
r$uc$ by ! am\nt ( any qualifi$ high]   
education exp5ses tak5 into acc\nt z    
qualifi$ exp5se di/ributions dur+ su*   
taxable ye>4  7iii7 ,qualifi$ fir/-"t   
homebuy] co/s ,! t]m qualifi$ fir/-"t   
homebuy] co/s means qualifi$ acquisition
 co/s 7z def9$ 9 section #gb7t77#h77;,c7
 ( ! ,int]nal ,rev5ue ,code ( #aihf7 )  
respect to a pr9cipal resid5ce 7)9 !    
mean+ ( section #aba ( su* ,code7 = a   
qualifi$ fir/-"t homebuy] 7z def9$ 9    
section #gb7t77#h77;,d77i7 ( su* ,code74
  7iv7 ,qualifi$ bus9ess capitalization 
or expansion co/s  7,i7 ,9 g5]al ,! t]m 
qualifi$ bus9ess capitalization or      
expansion co/s means qualifi$           
exp5ditures = ! capitalization or       
expansion ( a qualifi$ bus9ess pursuant 
to a qualifi$ bus9ess plan4  7,,ii7     
,qualifi$ exp5ditures ,! t]m qualifi$   
exp5ditures means exp5ditures normally  
associat$ ) />t+ or exp&+ a bus9ess &   
includ$ 9 a qualifi$ bus9ess plan1      

includ+ co/s = capital1 plant1 &        
equipm5t1 inv5tory exp5ses1 & attorney &
 acc\nt+ fees4  7,,iii7 ,qualifi$       
bus9ess ,! t]m qualifi$ bus9ess means   
any bus9ess t does n contrav5e any law4 
7,,iv7 ,qualifi$ bus9ess plan ,! t]m    
qualifi$ bus9ess plan means a bus9ess   
plan :i* has be5 approv$ by ! qualifi$  
f9ancial in/itution & :i* meets su*     
requirem5ts z ! ,secret>y may specify4  
7v7 ,qualifi$ rollov]s ,! t]m qualifi$  
rollov] means ! complete di/ribution ( !
 am\nts 9 an ,individual ,developm5t    
,acc\nt & p>allel acc\nt to ano!r       
,individual ,developm5t ,acc\nt &       
p>allel acc\nt e/abli%$ 9 ano!r qualifi$
 f9ancial in/itution = ! b5efit ( !     
,acc\nt own]4  7vi7 ,qualifi$ f9al      
di/ribution ,! t]m qualifi$ f9al        
di/ribution means1 9 ! case ( a deceas$ 
,acc\nt own]1 ! complete di/ribution ( !
 am\nts 9 ! ,individual ,developm5t     
,acc\nt & p>allel acc\nt directly to !  
sp\se1 any dep5d5t1 or o!r nam$         
b5efici>y ( ! deceas$4  7#g7 ,secret>y  

,! t]m ,secret>y means ! ,secret>y ( !  
,treasury4  #d4 ,/ructure & adm9i/ration
 ( qualifi$ ,individual ,developm5t     
,acc\nt programs  7a7 ,e/abli%m5t (     
qualifi$ ,individual ,developm5t ,acc\nt
 programs ,any qualifi$ f9ancial        
in/itution may apply to ! ,secret>y =   
approval to e/abli% #a or m qualifi$    
individual developm5t acc\nt programs   
:i* meet ! requirem5ts ( ?is ,act4  7b7 
,basic program /ructure  7#a7 ,9 g5]al  
,all qualifi$ individual developm5t     
acc\nt programs %all consi/ ( ! foll[+  
#b compon5ts = ea* p>ticipant3  7,a7 ,an
 ,individual ,developm5t ,acc\nt to :i* 
an eligible individual may contribute   
ca% 9 accordance ) section #e4  7,b7 ,a 
p>allel acc\nt to :i* all mat*+ funds   
%all be deposit$ 9 accordance ) section 
#f4  7#b7 ,tailor$ ,,ida programs ,a    
qualifi$ f9ancial in/itution may tailor 
its qualifi$ individual developm5t      
acc\nt program to all[ mat*+ funds to be
 sp5t on #a or m ( ! categories (       
qualifi$ exp5ses4  7c7 ,coord9ation ,)  

public h\s+ ag5cy individual ,sav+s     
,acc\nts ,section #c7;e77#b7 ( ! ,unit$ 
,/ates ,h\s+ ,act ( #aicg 7#db ,u4,s4,c4
 #adcg;a7e77#b77 is am5d$ by ins]t+ or 9
 any ,individual ,developm5t ,acc\nt    
e/abli%$ "u ! ,sav+s = ,work+ ,families 
,act ( #bjac aft] subsection4  7d7 ,tax 
treatm5t ( p>allel ,acc\nts  7#a7 ,9    
g5]al ,*apt] #gg ( ! ,int]nal ,rev5ue   
,code ( #aihf 7relat+ to miscellane\s   
provisions7 is am5d$ by add+ at ! end ! 
foll[+ new section3  #gebi4 ,tax        
inc5tives = individual developm5t       
p>allel ,acc\nts ,= purposes ( ?is      
title--  7#a7 any acc\nt describ$ 9     
section #d7;b77#a77;,b7 ( ! ,sav+s =    
,work+ ,families ,act ( #bjac %all be   
exempt f taxation1  7#b7 except z       
provid$ 9 section #de,s1 no item (      
income1 exp5se1 basis1 ga91 or loss )   
respect to su* an acc\nt may be tak5    
into acc\nt1 &  7#c7 any am\nt )drawn f 
su* an acc\nt %all n be includible 9    
gross income4  4  7#b7 ,con=m+ am5dm5t  
,! table ( sections = *apt] #gg ( su*   

,code is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #gebi4 ,tax inc5tives 
= individual developm5t p>allel acc\nts4
  4  7e7 ,coord9ation ( c]ta9 exp5ses   
,section #be;,a7g77#b7 ( su* ,code is   
am5d$ by /rik+ & at ! end ( subp>agraph 
7,b71 by /rik+ ! p]iod at ! end (       
subp>agraph 7,c7 & ins]t+ 1 &1 & by add+
 at ! end ! foll[+ new subp>agraph3     
7,d7 a qualifi$ exp5se di/ribution )    
respect to qualifi$ high] education     
exp5ses f an ,individual ,developm5t    
,acc\nt or a p>allel acc\nt "u section  
#g7;a7 ( ! ,sav+s = ,work+ ,families    
,act ( #bjac4  4  #e4 ,proc$ures = op5+ 
& ma9ta9+ an ,individual ,developm5t    
,acc\nt & qualify+ = mat*+ funds  7a7   
,op5+ an ,acc\nt ,an eligible individual
 may op5 an ,individual ,developm5t     
,acc\nt ) a qualifi$ f9ancial in/itution
 ^u c]tification t su* individual has   
nev] ma9ta9$ any o!r ,individual        
,developm5t ,acc\nt 7o!r ?an an         
,individual ,developm5t ,acc\nt to be   
t]m9at$ by a qualifi$ rollov]74  7b7    

,requir$ completion ( f9ancial education
 c\rse  7#a7 ,9 g5]al ,be=e becom+      
eligible to )draw funds to pay =        
qualifi$ exp5ses1 own]s ( ,individual   
,developm5t ,acc\nts mu/ complete #a or 
m f9ancial education c\rses specifi$ 9 !
 qualifi$ individual developm5t acc\nt  
program4  7#b7 ,/&>d & applicability (  
c\rse ,! ,secret>y1 9 consultation )    
repres5tatives ( qualifi$ individual    
developm5t acc\nt programs & f9ancial   
educators1 %all n lat] ?an ,janu>y #a1  
#bjaj1 e/abli% m9imum quality /&>ds = ! 
cont5ts ( f9ancial education c\rses &   
provid]s ( su* c\rses describ$ 9        
p>agraph 7#a7 & a protocol to exempt    
individuals f ! requirem5t "u p>agraph  
7#a7 9 ! case ( h>d%ip1 lack ( ne$1 !   
atta9m5t ( age #fe1 or a qualifi$ f9al  
di/ribution4  7c7 ,pro( ( /atus z an    
eligible individual ,f$]al income tax   
=ms = ! imm$iately prec$+ taxable ye> & 
any o!r evid5ce ( eligibility :i* may be
 requir$ by a qualifi$ f9ancial         
in/itution %all be pres5t$ to su*       

in/itution at ! "t ( ! e/abli%m5t ( !   
,individual ,developm5t ,acc\nt & 9 any 
taxable ye> 9 :i* contributions are made
 to ! ,acc\nt to qualify = mat*+ funds  
"u section #f7;b77#a77;,a74  7d7        
,special rule 9 ! case ( m>ri$          
individuals ,= purposes ( ?is ,act1 if1 
) respect to any taxable ye>1 #b m>ri$  
individuals file a ,f$]al jo9t income   
tax return1 !n n m ?an #a ( su*         
individuals may be treat$ z an eligible 
individual ) respect to ! succe$+       
taxable ye>4  #f4 ,deposits by qualifi$ 
,individual ,developm5t ,acc\nt programs
  7a7 ,p>allel ,acc\nts ,! qualifi$     
f9ancial in/itution %all deposit all    
mat*+ funds = ea* ,individual           
,developm5t ,acc\nt into a p>allel      
acc\nt at a qualifi$ f9ancial           
in/itution4  7b7 ,regul> deposits (     
mat*+ funds  7#a7 ,9 g5]al ,subject to  
p>agraph 7#b71 ! qualifi$ f9ancial      
in/itution %all deposit into ! p>allel  
acc\nt ) respect to ea* eligible        
individual ! foll[+ am\nts3  7,a7 ,a    

doll>-=-doll> mat* = ! fir/ #ejj        
contribut$ by ! eligible individual into
 an ,individual ,developm5t ,acc\nt )   
respect to any taxable ye> ( su*        
individual4  7,b7 ,any mat*+ funds      
provid$ by ,/ate1 local1 or private     
s\rces 9 accordance ) ! mat*+ ratio set 
by ^? s\rces4  7#b7 ,tim+ ( deposits ,a 
deposit ( ! am\nts describ$ 9 p>agraph  
7#a7 %all be made into a p>allel        
acc\nt--  7,a7 9 ! case ( am\nts        
describ$ 9 p>agraph 7#a77;,a71 n lat]   
?an #cj days aft] ! end ( ! cal5d> qu>t]
 dur+ :i* ! contribution describ$ 9 su* 
p>agraph 0 made1 &  7,b7 9 ! case (     
am\nts describ$ 9 p>agraph 7#a77;,b71 n 
lat] ?an #b bus9ess days aft] su* am\nts
 7 provid$4  7#c7 ,cross ref]5ce ,=     
all[ance ( tax cr$it = ,individual      
,developm5t ,acc\nt subsidies1 includ+  
mat*+ funds1 see section #de,s ( !      
,int]nal ,rev5ue ,code ( #aihf4  7c7    
,deposit ( mat*+ funds into ,individual 
,developm5t ,acc\nt ( individual :o has 
atta9$ age #fe ,9 ! case ( an           

,individual ,developm5t ,acc\nt own] :o 
atta9s ! age ( #fe1 ! qualifi$ f9ancial 
in/itution %all deposit ! funds 9 !     
p>allel acc\nt ) respect to su*         
individual into ! ,individual           
,developm5t ,acc\nt ( su* individual on 
! lat] (--  7#a7 ! day :i* is ! #a-ye>  
anniv]s>y ( ! deposit ( su* funds 9 !   
p>allel acc\nt1 or  7#b7 ! fir/ bus9ess 
day ( ! taxable ye> ( su* individual    
foll[+ ! taxable ye> 9 :i* su*          
individual atta9$ age #fe4  7d7 ,uni=m  
acc\nt+ regulations ,to ensure prop]    
recordkeep+ & det]m9ation ( ! tax cr$it 
"u section #de,s ( ! ,int]nal ,rev5ue   
,code ( #aihf1 ! ,secret>y %all         
prescribe regulations ) respect to      
acc\nt+ = mat*+ funds 9 ! p>allel       
acc\nts4  7e7 ,regul> report+ ( ,acc\nts
 ,any qualifi$ f9ancial in/itution %all 
report ! balances 9 any ,individual     
,developm5t ,acc\nt & p>allel acc\nt (  
an individual on n less ?an an annual   
basis to su* individual4  #g4 ,)drawal  
proc$ures  7a7 ,)drawals = qualifi$     

exp5ses  7#a7 ,9 g5]al ,an ,individual  
,developm5t ,acc\nt own] may )draw funds
 9 ord] to pay qualifi$ exp5se          
di/ributions f su* individual's--  7,a7 
,individual ,developm5t ,acc\nt1 b only 
f funds :i* h be5 on deposit 9 su*      
,acc\nt = at lea/ #a ye>1 &  7,b7       
p>allel acc\nt1 b only--  7i7 f mat*+   
funds :i* h be5 on deposit 9 su* p>allel
 acc\nt = at lea/ #a ye>1  7ii7 f e>n+s 
9 su* p>allel acc\nt1 aft] all mat*+    
funds describ$ 9 clause 7i7 h be5       
)drawn1 &  7iii7 to ! ext5t su* )drawal 
does n result 9 a rema9+ balance 9 su*  
p>allel acc\nt :i* is less ?an ! rema9+ 
balance 9 ! ,individual ,developm5t     
,acc\nt aft] su* )drawal4  7#b7         
,proc$ure ,^u receipt ( a )drawal reque/
 :i* meets ! requirem5ts ( p>agraph     
7#a71 ! qualifi$ f9ancial in/itution    
%all directly transf] ! funds           
electronically to ! di/ributees describ$
 9 section #c7f77;,a77ii74 ,if a        
di/ributee is n equipp$ to receive funds
 electronically1 ! qualifi$ f9ancial    

in/itution may issue su* funds by pap]  
*eck to ! di/ributee4  7b7 ,)drawals =  
nonqualifi$ exp5ses ,an ,individual     
,developm5t ,acc\nt own] may )draw any  
am\nt ( funds f ! ,individual           
,developm5t ,acc\nt = purposes o!r ?an  
to pay qualifi$ exp5se di/ributions1 b  
if1 aft] su* )drawal1 ! am\nt 9 !       
p>allel acc\nt ( su* own] 7exclud+ e>n+s
 on mat*+ funds7 exce$s ! am\nt rema9+ 9
 su* ,individual ,developm5t ,acc\nt1 !n
 su* own] %all =feit f ! p>allel acc\nt 
! less] ( su* excess or ! am\nt )drawn4 
7c7 ,)drawals f ,acc\nts ( noneligible  
individuals ,if ! individual = ^: b5efit
 an ,individual ,developm5t ,acc\nt is  
e/abli%$ ceases to be an eligible       
individual1 su* acc\nt %all rema9 an    
,individual ,developm5t ,acc\nt1 b su*  
individual %all n be eligible = any     
fur!r mat*+ funds "u section            
#f7;b77#a77;,a7 = contributions :i* are 
made to ! ,acc\nt dur+ any taxable ye>  
:5 su* individual is n an eligible      
individual4  7d7 ,effect ( pl$g+ ,acc\nt

 z security ,if1 dur+ any taxable ye> ( 
! individual = ^: b5efit an ,individual 
,developm5t ,acc\nt is e/abli%$1 t      
individual uses ! ,acc\nt1 !            
individual's p>allel acc\nt1 or any     
portion !re( z security = a loan1 !     
portion s us$ %all be treat$ z a )drawal
 ( su* portion f ! ,individual          
,developm5t ,acc\nt = purposes o!r ?an  
to pay qualifi$ exp5ses4  #h4           
,c]tification & t]m9ation ( qualifi$    
,individual ,developm5t ,acc\nt programs
  7a7 ,c]tification proc$ures ,^u       
e/abli%+ a qualifi$ individual          
developm5t acc\nt program "u section #d1
 a qualifi$ f9ancial in/itution %all    
c]tify to ! ,secret>y at su* "t & 9 su* 
mann] z may be prescrib$ by ! ,secret>y 
& accompani$ by any docum5tation requir$
 by ! ,secret>y1 t--  7#a7 ! acc\nts    
describ$ 9 subp>agraphs 7,a7 & 7,b7 (   
section #d7;b77#a7 are op]at+ pursuant  
to all ! provisions ( ?is ,act1 &  7#b7 
! qualifi$ f9ancial in/itution agrees to
 implem5t an in=mation sy/em necess>y to

 monitor ! co/ & outcomes ( ! qualifi$  
individual developm5t acc\nt program4   
7b7 ,au?ority ,to t]m9ate qualifi$ ,,ida
 program ,if ! ,secret>y det]m9es t a   
qualifi$ f9ancial in/itution "u ?is ,act
 is n op]at+ a qualifi$ individual      
developm5t acc\nt program 9 accordance )
 ! requirem5ts ( ?is ,act 7& has n      
implem5t$ any corrective recomm5dations 
direct$ by ! ,secret>y71 ! ,secret>y    
%all t]m9ate su* in/itution's au?ority  
to conduct ! program4 ,if ! ,secret>y is
 unable to id5tify a qualifi$ f9ancial  
in/itution to assume ! au?ority to      
conduct su* program1 !n any funds 9 a   
p>allel acc\nt e/abli%$ = ! b5efit ( any
 individual "u su* program %all be      
deposit$ into ! ,individual ,developm5t 
,acc\nt ( su* individual z ( ! fir/ day 
( su* t]m9ation4  #i4 ,report+1         
monitor+1 & evaluation  7a7             
,responsibilities ( qualifi$ f9ancial   
in/itutions ,ea* qualifi$ f9ancial      
in/itution t op]ates a qualifi$         
individual developm5t acc\nt program "u 

section #d %all report annually to !    
,secret>y )9 #ij days aft] ! end ( ea*  
cal5d> ye> on--  7#a7 ! numb] (         
individuals mak+ contributions into     
,individual ,developm5t ,acc\nts & !    
am\nts contribut$1  7#b7 ! am\nts       
contribut$ into ,individual ,developm5t 
,acc\nts by eligible individuals & !    
am\nts deposit$ into p>allel acc\nts =  
mat*+ funds1  7#c7 ! am\nts )drawn f    
,individual ,developm5t ,acc\nts &      
p>allel acc\nts1 & ! purposes = :i* su* 
am\nts 7 )drawn1  7#d7 ! balances rema9+
 9 ,individual ,developm5t ,acc\nts &   
p>allel acc\nts1 &  7#e7 su* o!r        
in=mation ne$$ to help ! ,secret>y      
monitor ! effectiv5ess ( ! qualifi$     
individual developm5t acc\nt program    
7provid$ 9 a non-individually           
id5tifiable mann]74  7b7                
,responsibilities ( ! ,secret>y  7#a7   
,monitor+ protocol ,n lat] ?an #ab mon?s
 aft] ! date ( ! enactm5t ( ?is ,act1 ! 
,secret>y1 9 consultation ) ! ,secret>y 
( ,heal? & ,human ,s]vices1 %all develop

 & implem5t a protocol & process to     
monitor ! co/ & outcomes ( ! qualifi$   
individual developm5t acc\nt programs   
e/abli%$ "u section #d4  7#b7 ,annual   
reports ,= ea* ye> aft] #bjad1 !        
,secret>y %all submit a progress report 
to ,congress on ! /atus ( su* qualifi$  
individual developm5t acc\nt programs4  
,su* report %all1 to ! ext5t data are   
available1 include f a repres5tative    
sample ( qualifi$ individual developm5t 
acc\nt programs in=mation on--  7,a7 !  
*>act]i/ics ( p>ticipants1 includ+ age1 
g5d]1 race or e?nicity1 m>ital /atus1   
numb] ( *ildr51 employm5t /atus1 &      
mon?ly income1  7,b7 deposits1 )drawals1
 balances1 uses ( ,individual           
,developm5t ,acc\nts1 & p>ticipant      
*>act]i/ics1  7,c7 ! *>act]i/ics (      
qualifi$ individual developm5t acc\nt   
programs1 includ+ mat* rate1 economic   
education requirem5ts1 & p]missible uses
 ( acc\nts1 &  7,d7 process in=mation on
 program implem5tation & adm9i/ration1  
especially on problems enc\nt]$ & h[    

problems 7 solv$4  7#c7 ,use ( ,acc\nts 
9 rural areas enc\rag$ ,! ,secret>y %all
 develop me?ods to enc\rage ! use (     
,individual ,developm5t ,acc\nts 9 rural
 areas4  #aj4 ,au?orization (           
appropriations  7a7 ,9 g5]al ,!re is    
au?oriz$ to be appropriat$ to !         
,secret>y #c1jjj1jjj = fiscal ye> #bjad 
& = ea* fiscal ye> ?r\gh #bjai1 = !     
purposes ( implem5t+ ?is ,act1 includ+ !
 report+1 monitor+1 & evaluation requir$
 "u section #i1 to rema9 available until
 exp5d$4  7b7 ,grants ,!re is au?oriz$  
to be appropriat$ to ! ,secret>y        
#abj1jjj1jjj--  7#a7 to make grants to  
qualifi$ nonpr(it organizations &       
,indian tribes to help defray !         
adm9i/rative co/s associat$ ) ! op]ation
 ( individual developm5t acc\nt         
programs1 includ+ ! requir$ f9ancial    
education c\rses1 &  7#b7 to provide    
te*nical assi/ance to qualifi$ nonpr(it 
organizations & ,indian tribes 9 meet+  
su* program requirem5ts4  #aa4 ,mat*+   
funds = ,individual ,developm5t ,acc\nts

 provid$ ?r\gh a tax cr$it = qualifi$   
f9ancial in/itutions  7a7 ,9 g5]al      
,subp>t ,d ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf 7relat+ to bus9ess relat$ cr$its7 
is am5d$ by add+ at ! end ! foll[+ new  
section3  #de,s4 ,individual ,developm5t
 ,acc\nt inve/m5t cr$it  7a7            
,det]m9ation ( am\nt ,= purposes (      
section #ch1 ! individual developm5t    
acc\nt inve/m5t cr$it det]m9$ "u ?is    
section ) respect to any eligible entity
 = any taxable ye> is an am\nt equal to 
! individual developm5t acc\nt inve/m5t 
provid$ by su* eligible entity dur+ !   
taxable ye> "u an individual developm5t 
acc\nt program e/abli%$ "u section #d ( 
! ,sav+s = ,work+ ,families ,act (      
#bjac4  7b7 ,applicable tax ,= !        
purposes ( ?is section1 ! t]m applicable
 tax means ! excess 7if any7 (--  7#a7 !
 tax impos$ "u ?is *apt] 7o!r ?an !     
taxes impos$ "u ! provisions describ$ 9 
subp>agraphs 7,c7 ?r\gh 7,q7 ( section  
#bf7;b77#b771 ov]  7#b7 ! cr$its        

all[able "u subp>t ,b 7o!r ?an ?is      
section7 & subp>t ,d ( ?is "p4  7c7     
,individual ,developm5t ,acc\nt inve/m5t
 ,= purposes ( ?is section1 ! t]m       
individual developm5t acc\nt inve/m5t   
means1 ) respect to an individual       
developm5t acc\nt program 9 any taxable 
ye>1 an am\nt equal to ! sum (--  7#a7 !
 aggregate am\nt ( doll>-=-doll> mat*es 
"u su* program "u section               
#f7;b77#a77;,a7 ( ! ,sav+s = ,work+     
,families ,act ( #bjac = su* taxable    
ye>1 plus  7#b7 #ej ) respect to ea*    
,individual ,developm5t ,acc\nt         
ma9ta9$--  7,a7 z ( ! end ( su* taxable 
ye>1 b only if su* taxable ye> is )9 !  
#g-taxable-ye> p]iod beg9n+ ) ! taxable 
ye> 9 :i* su* ,acc\nt is op5$1 &  7,b7 )
 a balance ( n less ?an #ajj 7o!r ?an ! 
taxable ye> 9 :i* su* ,acc\nt is op5$74 
7d7 ,eligible entity ,= purposes ( ?is  
section1 except z provid$ 9 regulations1
 ! t]m eligible entity means a qualifi$ 
f9ancial in/itution4  7e7 ,o!r          
def9itions ,= purposes ( ?is section1   

any t]m us$ 9 ?is section & also 9 !    
,sav+s = ,work+ ,families ,act ( #bjac  
%all h ! mean+ giv5 su* t]m by su* ,act4
  7f7 ,d5ial ( d\ble b5efit  7#a7 ,9    
g5]al ,no d$uction or cr$it 7o!r ?an "u 
?is section7 %all be all[$ "u ?is *apt] 
) respect to any exp5se :i*--  7,a7 is  
tak5 into acc\nt "u subsection          
7c77#a77;,a7 9 det]m9+ ! cr$it "u ?is   
section1 or  7,b7 is attributable to !  
ma9t5ance ( an ,individual ,developm5t  
,acc\nt4  7#b7 ,det]m9ation ( am\nt     
,solely = purposes ( p>agraph 7#a77;,b71
 ! am\nt attributable to ! ma9t5ance (  
an ,individual ,developm5t ,acc\nt %all 
be deem$ to be ! doll> am\nt ( ! cr$it  
all[$ "u subsection 7c77l77,b7 = ea*    
taxable ye> su* ,individual ,developm5t 
,acc\nt is ma9ta9$4  7g7 ,cr$it may be  
transf]r$  7#a7 ,9 g5]al ,an eligible   
entity may transf] any cr$it all[able to
 ! eligible entity "u subsection 7a7 to 
any p]son o!r ?an to ano!r eligible     
entity :i* is exempt f tax "u ?is title4
 ,! det]m9ation z to :e!r a cr$it is    

all[able %all be made )\t reg>d to !    
tax-exempt /atus ( ! eligible entity4   
7#b7 ,cons5t requir$ = revocation ,any  
transf] "u p>agraph 7#a7 may be revok$  
only ) ! cons5t ( ! ,secret>y4  7h7     
,regulations ,! ,secret>y may prescribe 
su* regulations z may be necess>y or    
appropriate to c>ry out ?is section1    
includ+--  7#a7 su* regulations z       
necess>y to insure t any cr$it describ$ 
9 subsection 7g77#a7 is claim$ once & n 
retransf]r$ by a transf]ee1 &  7#b7     
regulations provid+ = a recapture ( !   
cr$it all[$ "u ?is section 7not)/&+ any 
t]m9ation date describ$ 9 subsection    
7i77 9 cases :]e !re is a =feiture "u   
section #g7;b7 ( ! ,sav+s = ,work+      
,families ,act ( #bjac 9 a subsequ5t    
taxable ye> ( any am\nt :i* 0 tak5 into 
acc\nt 9 det]m9+ ! am\nt ( su* cr$it4   
7i7 ,application ( ,section  7#a7 ,9    
g5]al ,?is section %all apply to any    
exp5diture made 9 any taxable ye> end+  
aft] ,decemb] #ca1 #bjac1 & beg9n+ on or
 be=e ,janu>y #a1 #bjba1 ) respect to   

any ,individual ,developm5t ,acc\nt     
:i*--  7,a7 is op5$ be=e ,janu>y #a1    
#bjai1 &  7,b7 z det]m9$ by ! ,secret>y1
 :5 add$ to all ( ! previ\sly op5$      
,individual ,developm5t ,acc\nts1 does n
 exce$ #b1gjj1jjj ,acc\nts4  ,not)/&+ ! 
prec$+ s5t5ce1 ?is section %all apply to
 am\nts :i* are describ$ 9 subsection   
7c77#a7 & :i* are timely deposit$ into a
 p>allel acc\nt dur+ ! #cj-;day p]iod   
foll[+ ! end ( ! la/ taxable ye> beg9n+ 
on or be=e ,janu>y #a1 #bjai4  7#b7     
,det]m9ation ( limitation ,! limitation 
on ! numb] ( ,individual ,developm5t    
,acc\nts "u p>agraph 7#a77;,b7 %all be  
allocat$ by ! ,secret>y among eligible  
individuals z su* individuals op5 su*   
,acc\nts "u qualifi$ individual         
developm5t acc\nt programs1 except t1 9 
! case ( #cjj1jjj ,acc\nts1 su*         
limitation %all be equally allocat$     
among ! ,/ates4  4  7b7 ,cr$it treat$ z 
bus9ess cr$it ,section #ch7;b7 ( su*    
,code 7relat+ to curr5t ye> bus9ess     
cr$it7 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 ! individual developm5t acc\nt    
inve/m5t cr$it det]m9$ "u section       
#de,s7a74  4  7c7 ,con=m+ am5dm5t ,!    
table ( sections = subp>t ,c ( "p ,,iv (
 sub*apt] ,a ( *apt] #a ( su* ,code is  
am5d$ by add+ at ! end ! foll[+ new     
item3  ,sec4 #de,s4 ,individual         
developm5t acc\nt inve/m5t cr$it4  4    
7d7 ,report reg>d+ ,acc\nt ma9t5ance    
fees ,! ,secret>y ( ! ,treasury %all    
/udy ! adequacy ( ! am\nt specifi$ 9    
section #de,s7c77#b7 ( ! ,int]nal       
,rev5ue ,code ( #aihf 7z add$ by ?is    
section74 ,n lat] ?an ,decemb] #ca1     
#bjad1 ! ,secret>y ( ! ,treasury %all   
report ! f9d+s ( ! /udy describ$ 9 !    
prec$+ s5t5ce to ,congress4  7e7        
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s end+ 
aft] ,decemb] #ca1 #bjac4  #ab4 ,acc\nt 
funds disreg>d$ = purposes ( c]ta9      
means-te/$ ,f$]al programs ,not)/&+ any 

o!r provision ( ,f$]al law 7o!r ?an !   
,int]nal ,rev5ue ,code ( #aihf7 t       
requires consid]ation ( #a or m f9ancial
 circum/ances ( an individual1 = !      
purpose ( det]m9+ eligibility to        
receive1 or ! am\nt (1 any assi/ance or 
b5efit au?oriz$ by su* provision to be  
provid$ to or = ! b5efit ( su*          
individual1 any am\nt 7includ+ e>n+s    
!reon7 9 any ,individual ,developm5t    
,acc\nt ( su* individual & any mat*+    
deposit made on behalf ( su* individual 
7includ+ e>n+s !reon7 9 any p>allel     
acc\nt %all be disreg>d$ = su* purpose )
 respect to any p]iod dur+ :i* su*      
individual ma9ta9s or makes             
contributions into su* ,individual      
,developm5t ,acc\nt4