,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #eeed  ,,in ,,the ,,house ,,of  
,,representatives  ,september #ah1 #bjad
 ,mr4 ,bishop of ,new ,york 7for himself
 and ,mr4 ,rangel7 introduced the       
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to permit distributions 
from #ebi accounts for medical expenses 
of account owners who are veterans with 
disability ratings of greater than #ej  
percent4  #a4 ,short title ,this ,act   
may be cited as the ,helping ,wounded   
,warriors ,cover ,medical ,expenses     
,act4  #b4 ,distributions from #ebi     
accounts for medical expenses of account
 owners who are veterans with disability
 ratings of greater than #ej percent    
7a7 ,exemption from #ebi penalty        
,section #ebi7;c77#f7 of the ,internal  
,revenue ,code of #aihf is amended to   
read as follows3  7#f7 ,additional tax  
7,a7 ,in general ,the tax imposed by    
section #ecj7;d77#d7 shall apply to any 

payment or distribution from a qualified
 tuition program in the same manner as  
such tax applies to a payment or        
distribution from a ,coverdell education
 savings account4 ,this paragraph shall 
not apply to any payment or distribution
 in any taxable year beginning before   
,january #a1 #bjjd1 which is includible 
in gross income but used for qualified  
higher education expenses of the        
designated beneficiary4  7,b7 ,exception
 ,subparagraph 7,a7 shall not apply to  
any payment or distribution from a      
qualified tuition program to the owner  
of an account under such program if--   
7i7 at the time of such payment or      
distribution1 the owner of such account 
is a veteran whom the ,secretary of     
,veterans ,affairs determines has a     
service-connected disability rated at   
#ej percent or more1 and  7ii7 in lieu  
of using such payment or distribution   
for qualified higher education expenses1
 such payment or distribution is used   
for medical care 7as defined in section 

#bac7;d77 for such owner4  7,c7         
,coordination with medical expense      
deduction ,for purposes of determining  
the amount of the deduction under       
section #bac1 any payment or            
distribution to which subparagraph 7,b7 
applies shall not be treated as an      
expense paid for medical care4  4  7b7  
,exclusion from income ,section         
#gb7;e77#f7 of the ,internal ,revenue   
,code of #aihf is amended to read as    
follows3  7#f7 ,extension of paragraph  
7#b77;,b7 to qualified tuition programs 
and ,coverdell education savings        
accounts  7,a7 ,in general              
,notwithstanding any other provision of 
this subsection1 paragraph 7#b77;,b7    
shall apply to amounts received under a 
qualified tuition program 7as defined in
 section #ebi7;b77 or under a ,coverdell
 education savings account 7as defined  
in section #ecj7;b774 ,the rule of      
paragraph 7#h77;,b7 shall apply for     
purposes of this paragraph4  7,b7       
,exception ,in the case of an amount    

received under a qualified tuition      
program 7as defined in section #ebi7;b77
 which is not subject to the penalty    
under subparagraph 7,a7 of section      
#ebi7;c77#f7 by reason of subparagraph  
7,b7 thereof--  7i7 subparagraph 7,a7 of
 this paragraph shall not apply1 and    
7ii7 the amount received which1 but for 
this subparagraph1 would be treated as  
income on the contract shall be treated 
as investment in the contract4  4  7c7  
,effective date ,the amendments made by 
this section shall apply to payments and
 distributions after the date of the    
enactment of this ,act4