,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #eegf  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,septemb] #ah1 #bjad  
,mr4 ,cr[ley 7= himself & ,mr4 ,ellison7
 introduc$ ! foll[+ bill2 :i* 0 ref]r$  
to ! ,committee on ,ways & ,means  ,a   
,,bill  ,to e/abli% ,u,s,accounts1 & =  
o!r purposes4  #a4 ,%ort title2 table ( 
cont5ts  7a7 ,%ort title ,?is ,act may  
be cit$ z ! ,u,s,accounts3 ,inve/+ 9    
,am]ica's ,future ,act ( #bjad4  7b7    
,table ( cont5ts ,! table ( cont5ts =   
?is ,act is z foll[s3  ,sec4 #a4 ,%ort  
title2 table ( cont5ts4 ,sec4 #b4       
,f9d+s4 ,sec4 #c4 ,u,s,account ,fund4   
,sec4 #d4 ,u,s,accounts4 ,sec4 #e4      
,assignm5t1 ali5ation1 & treatm5t (     
deceas$ individuals4 ,sec4 #f4 ,rules   
gov]n+ ,u,s,accounts relat+ to inve/m5t1
 acc\nt+1 & report+4 ,sec4 #g4          
,u,s,account ,fund ,bo>d4 ,sec4 #h4     
,fiduci>y responsibilities4 ,sec4 #i4   
,acc\nts disreg>d$ 9 det]m9+ eligibility
 = ,f$]al b5efits4 ,sec4 #aj4 ,reports4 
,sec4 #aa4 ,tax provisions4  7c7        

,def9itions ,= purposes ( ?is ,act--    
7#a7 ,u,s,account ,fund ,! t]m          
,u,s,account ,fund means ! fund e/abli%$
 "u section #c4  7#b7 ,u,s,account ,!   
t]m ,u,s,account means an acc\nt        
e/abli%$ "u section #d4  7#c7 ,secret>y 
,! t]m ,secret>y means ! ,secret>y ( !  
,treasury or ! ,secret>y's delegate4    
7#d7 ,u,s,account ,fund ,bo>d ,! t]m    
,u,s,account ,fund ,bo>d means ! bo>d   
e/abli%$ pursuant to section #g4  7#e7  
,executive ,director ,! t]m ,executive  
,director means ! executive director    
appo9t$ pursuant to section #g4  #b4    
,f9d+s ,! ,congress f9ds ! foll[+3  7#a7
 ,!re is a /rong l9k betwe5 sav+s &     
economic opportunity4 ,*ildr5 9 ! poore/
 fif? ( h\seholds :o manage to move up !
 income ladd] z adults h almo/ t5 times 
! weal? ( ^? :o rema9 at ! bottom4  7#b7
 ,ev5 a small am\nt ( *ildr5's sav+s c h
 a significant impact on college        
success1 a key driv] ( economic         
mobility4 ,l[- & mod]ate-income *ildr5 )
 less ?an #ejj sav$ = college are ?ree  

times m likely to enroll 9 college & f\r
 times m likely to graduate ?an *ildr5 )
 no sav+s4  7#c7 ,mo/ work+ families 9  
,am]ica lack sav+s & face f9ancial      
insecurity z a result4 #dd p]c5t (      
families are 8liquid asset poor10 mean+ 
!y lack accessible sav+s to survive =   
?ree mon?s at ! ,f$]al pov]ty level4    
7#d7 ,families ) *ildr5 face additional 
b>ri]s to build+ sav+s4 ,^! families are
 m likely ?an *ildless h\seholds to live
 9 asset pov]ty4  7#e7 ,! ,great        
,recession has exac]bat$ f9ancial       
insecurity = millions ( ,am]ican        
families4 ,betwe5 #bjji & #bjaa1 !      
bottom #ic p]c5t ( h\seholds saw a drop 
9 net wor?1 :ile ! weal?ie/ #g p]c5t (  
h\seholds saw a significant increase 9  
net wor?4  7#f7 ,*ildr5's sav+s acc\nts 
programs are evid5ce-bas$ & h be5 te/$  
?r\gh\t ! c\ntry4 ,9 #bjjc1 ! ,sav+ =   
,education1 ,entrepr5eur%ip1 &          
,d[npaym5t 7,,se$7 national demon/ration
 project 0 e/abli%$ to evaluate ! policy
 & practice ( sav+s acc\nts = *ildr54   

,,se$ f\nd t ev5 v l[-income p>5ts w    
save & inve/ = _! *ildr5's future if    
giv5 ! opportunity4  7#g7 ,s9ce #bjji1  
publicly fund$1 univ]sal *ildr5's sav+s 
acc\nts programs h laun*$ citywide 9    
,san ,francisco1 ,cali=nia1 c\ntywide 9 
,cuyahoga ,c\nty1 ,ohio1 & /atewide 9   
,nevada & ,ma9e4 ,additional *ildr5's   
sav+s programs s]v+ ?\s&s ( *ildr5 h    
laun*$ or are laun*+ 9 ,colorado1       
,hawaii1 ,ill9ois1 ,kansas1 ,mi*igan1   
,m9nesota1 ,mississippi1 ,new ,mexico1  
,new ,york1 ,p5nsylvania1 ,s\? ,dakota1 
,texas1 ,wa%+ton1 & ,wa%+ton1 ,,dc4     
7#h7 ,9 ord] to exp& economic           
opportunity & spur economic gr[?1 !     
,unit$ ,/ates %\ld promote sav+s &      
inve/m5ts = all ,am]icans4  #c4         
,u,s,account ,fund  7a7 ,e/abli%m5t ,!re
 is e/abli%$ 9 ! ,treasury ( ! ,unit$   
,/ates a fund to be kn[n z !            
,u,s,account ,fund4  7b7 ,am\nts held by
 ,fund ,! ,u,s,account ,fund consi/s ( !
 sum ( all am\nts paid into ! ,fund "u  
?is ,act1 increas$ by ! total net e>n+s 

f inve/m5ts ( sums held 9 ! ,fund or    
r$uc$ by ! total net losses f inve/m5ts 
( sums held 9 ! ,fund1 & r$uc$ by !     
total am\nt ( paym5ts made f ! ,fund    
7includ+ paym5ts = adm9i/rative         
exp5ses74  7c7 ,use ( ,fund  7#a7 ,9    
g5]al ,! sums 9 ! ,u,s,account ,fund are
 appropriat$ & %all rema9 available )\t 
fiscal ye> limitation--  7,a7 to make   
contributions to ,u,s,accounts1  7,b7 to
 inve/ "u section #f1  7,c7 to make     
di/ributions 9 accordance ) ?is ,act1   
7,d7 to pay ! adm9i/rative exp5ses (    
c>ry+ out ?is ,act1 &  7,e7 to pur*ase  
insurance z provid$ 9 section           
#h7;c77#b74  7#b7 ,exclusive purposes ,!
 sums 9 ! ,u,s,account ,fund %all n be  
appropriat$ = any purpose o!r ?an !     
purposes specifi$ 9 ?is section & may n 
be us$ = any o!r purpose4  7d7 ,transf]s
 to ,u,s,account ,fund ,! ,secret>y %all
 make transf]s f ! g5]al fund ( !       
,treasury to ! ,u,s,account ,fund z     
foll[s3  7#a7 ,automatic contribution   
,^u receipt ( a c]tification "u section 

#d7;b77#b7 ) respect to an individual1 !
 ,secret>y %all transf] #ejj to !       
,u,s,account ( ! individual4  7#b7      
,mat*+ contributions ,^u receipt ( ea*  
c]tification "u section #d7;d7 ) respect
 to an individual1 ! ,secret>y %all     
transf] ! mat*+ am\nt to ! ,u,s,account 
( ! individual4  7e7 ,private           
contributions ,! ,executive ,director   
%all pay into ! ,u,s,account ,fund su*  
am\nts z are contribut$ "u section      
#d7;c74  7f7 ,prohibition on ,use (     
,payroll ,taxes ,to ,fund ,u,s,accounts 
,! ,u,s,account ,fund & ,u,s,accounts   
are :olly sep>ate & unique f ! ,social  
,security sy/em4 ,no am\nt f any tax on 
employm5t may be contribut$ to !        
,u,s,account ,fund or ,u,s,accounts4    
#d4 ,u,s,accounts  7a7 ,9 g5]al  7#a7   
,e/abli%m5t ,! ,executive ,director %all
 e/abli% 9 ! ,u,s,account ,fund an      
acc\nt 7to be kn[n z a ,u,s,account7 =  
ea* qualify+ *ild c]tifi$ "u subsection 
7b74 ,ea* su* acc\nt %all be id5tifi$ to
 its acc\nt hold] by means ( a unique   

p]sonal id5tifi] curr5tly recogniz$ by !
 ,int]nal ,rev5ue ,s]vice & %all rema9 9
 ! ,u,s,account ,fund unless transf]r$  
to private managem5t "u subsection 7g74 
7#b7 ,acc\nt balance ,! balance 9 an    
acc\nt hold]'s ,u,s,account at any "t is
 ! excess (--  7,a7 ! sum (--  7i7 all  
deposits made into ! ,u,s,account ,fund 
& cr$it$ to ! acc\nt "u p>agraph 7#c71 &
  7ii7 ! total am\nt ( allocations made 
to & r$uctions made 9 ! acc\nt pursuant 
to p>agraph 7#d71 ov]  7,b7 ! am\nts    
paid out ( ! acc\nt ) respect to su*    
individual "u subsection 7d74  7#c7     
,cr$it+ ( contributions ,pursuant to    
regulations :i* %all be prescrib$ by !  
,executive ,director1 ! ,executive      
,director %all cr$it to ea* ,u,s,account
 ! am\nts paid into ! ,u,s,account ,fund
 "u section #c7;d7 :i* are attributable 
to ! acc\nt hold] ( su* acc\nt4  7#d7   
,allocation ( e>n+s & losses ,!         
,executive ,director %all allocate to   
ea* ,u,s,account an am\nt equal to ! net
 e>n+s & net losses f ea* inve/m5t (    

sums 9 ! ,u,s,account ,fund :i* are     
attributable1 on a pro rata basis1 to   
sums cr$it$ to su* acc\nt1 r$uc$ by an  
appropriate %>e ( ! adm9i/rative exp5ses
 paid out ( ! net e>n+s1 z det]m9$ by ! 
,executive ,director4  7b7 ,qualify+    
*ild ,= purposes ( ?is ,act--  7#a7 ,9  
g5]al ,! t]m qualify+ *ild has ! mean+  
giv5 su* t]m by section #bd7;c7 ( !     
,int]nal ,rev5ue ,code ( #aihf4  7#b7   
,c]tification ( acc\nt hold]s ,on ! date
 on :i* a qualify+ *ild is regi/]$ = a  
,u,s,account1 ! ,secret>y %all c]tify to
 ! ,executive ,director ! "n ( su*      
qualify+ *ild4  7c7 ,private            
contributions  7#a7 ,9 g5]al ,!         
,executive ,director %all accept ca%    
contributions = paym5t into !           
,u,s,account ,fund if su* contribution  
is id5tifi$ 79 su* mann] z ! ,executive 
,director may require7 ) ! acc\nt hold] 
( a ,u,s,account to :om x is to be      
cr$it$ at ! "t ! contribution is made4  
7#b7 ,alt]native me?ods ( contribution  
7,a7 ,payroll d$uction ,"u regulations  

prescrib$ by ! ,executive ,director & at
 ! election ( ! employ]1 contributions  
"u p>agraph 7#a7 may be made ?r\gh      
payroll d$uctions4  7,b7 ,tax refunds   
,"u regulations prescrib$ by !          
,secret>y1 contributions "u p>agraph    
7#a7 may be made by an election to      
contribute all or a portion ( ! tax     
refund ( ! contributor4  7#c7 ,annual   
limitation ,no contribution may be      
accept$ "u p>agraph 7#a7--  7,a7 unless 
x is 9 ca%1  7,b7 aft] ! date on :i* !  
,u,s,account hold] ceases to be a       
qualify+ *ild1 &  7,c7 except 9 ! case (
 mat*+ contributions "u subsection 7d71 
if su* contribution w\ld result 9       
aggregate contributions = ! cal5d> ye>  
exce$+ #b1jjj4  7d7 ,gov]nm5t mat*+     
contribution  7#a7 ,9 g5]al ,^u su* %[+ 
z ! ,executive ,director may require to 
e/abli% ! basis = c]tification1 !       
,executive ,director %all1 ) respect to 
ea* private contribution to ! acc\nt (  
an acc\nt hold] :i* is made be=e su*    
acc\nt hold] atta9s age #ah1 c]tify to !

 ,secret>y ! mat*+ am\nt ) respect to   
su* contribution4  7#b7 ,mat*+ am\nt    
7,a7 ,9 g5]al ,= purposes ( ?is         
subsection1 ! t]m mat*+ am\nt means1 an 
am\nt equal to #ajj p]c5t ( private     
contributions to ! ,u,s,account ( an    
individual dur+ any cal5d> ye> beg9n+   
aft] ! cal5d> ye> 9 :i* ! ,u,s,account  
is e/abli%$1 n 9 excess ( #ejj = !      
cal5d> ye>4  7,b7 ,phase\t bas$ on e>n$ 
income cr$it phase\t ,! #ejj 9          
subp>agraph 7,a7 %all be r$uc$ 7b n bel[
 z]o7 by an am\nt equal to ! phase\t    
p]c5tage ( s mu* ( ! adju/$ gross income
 7or1 if great]1 ! e>n$ income7 ( !     
taxpay] = ! taxable ye> z exce$s !      
phase\t am\nt4 ,= purposes ( ?is        
p>agraph1 t]ms us$ 9 ! prec$+ s5t5ce :i*
 are us$ 9 section #cb ( ! ,int]nal     
,rev5ue ,code ( #aihf %all h ! mean+s   
giv5 su* t]ms by su* section #cb4  7#c7 
,private contribution ,= purposes ( ?is 
subsection1 ! t]m private contribution  
means a contribution accept$ "u         
subsection 7c74  7e7 ,di/ributions  7#a7

 ,9 g5]al ,no am\nt may be di/ribut$ f a
 ,u,s,account be=e ! date on :i* !      
acc\nt hold] atta9s ! age ( #ah4  7#b7  
,high] education exp5ses ,p>agraph 7#a7 
%all n apply to am\nts paid = qualifi$  
tuition & relat$ exp5ses 7z def9$ 9     
section #be;,a7f77#a77 ( ! acc\nt hold] 
if ! acc\nt hold] is an eligible /ud5t  
7z def9$ 9 section #be;,a7b77#c77 )     
respect to su* exp5ses4  7#c7 ,rollov]  
,di/ributions f a ,u,s,account aft] !   
date on :i* ! acc\nt hold] atta9s ! age 
( #ah :i*1 )9 #fj days ( su*            
di/ribution1 are transf]r$ to an        
individual retirem5t plan 7z def9$ 9    
section #ggja7;a77#cg7 ( ! ,int]nal     
,rev5ue ,code ( #aihf7 ( ! acc\nt hold] 
%all be treat$ z a rollov] contribution 
:i* meets ! requirem5ts ( section       
#djh7;d77#c7 ( su* ,code4  7#d7 ,acc\nt 
t]m9ation  7,a7 ,9 g5]al ,on ! date on  
:i* ! acc\nt hold] atta9s age #ai1 !    
acc\nt %all cease to be treat$ z a      
,u,s,account & any rema9+ funds 9 !     
acc\nt %all be di/ribut$ to ! acc\nt    

hold]'s retirem5t sav+s vehicle e/abli%$
 pursuant to ! ,presid5tial ,memor&um on
 ,retirem5t ,sav+s ,security issu$      
,janu>y #bh1 #bjad4  7,b7 ,special rule 
relat+ to ,my,i,r,a ,am\nts transf]r$ to
 a sav+s vehicle "u subp>agraph 7,a7 may
 be di/ribut$ f su* vehicles dur+ !     
#aj-ye> p]iod beg9n+ on ! date ( su*    
transf] )\t any p5alty "u ! ,int]nal    
,rev5ue ,code ( #aihf4  7f7 ,rights (   
legal gu>dian ,until ! acc\nt hold] ( a 
,u,s,account atta9s age #ah1 any rights 
or duties ( ! acc\nt hold] "u ?is ,act )
 respect to su* acc\nt %all be ex]cis$  
or p]=m$ by ! legal gu>dian ( su* acc\nt
 hold]4  7g7 ,private managem5t  7#a7 ,9
 g5]al ,! acc\nt hold] ( a ,u,s,account 
may elect1 "u regulations prescrib$ by !
 ,secret>y1 to transf] ! ,u,s,account to
 a tru/ee :o meets ! requirem5ts (      
p>agraph 7#b74  7#b7 ,tru/ee requirem5ts
 ,a tru/ee meets ! requirem5ts ( ?is    
p>agraph if ! tru/ee--  7,a7 is a bank  
7z def9$ 9 section #djh7n77 or ano!r    
p]son :o demon/rates to ! satisfaction (

 ! ,secret>y t ! mann] 9 :i* t p]son w  
adm9i/] ! ,u,s,account w be consi/5t ) !
 requirem5ts ( ?is ,act or :o has s     
demon/rat$ ) respect to any             
,u,s,account1  7,b7 agrees to a cap on  
its fees & co/s1 z det]m9$ by !         
,treasury1 = ! managem5t (              
,u,s,accounts1  7,c7 provides an        
inve/m5t fund t maximizes gr[? ov] "t   
:ile m9imiz+ risk1 &  7,d7 provides !   
safegu>ds ) respect to ,u,s,accounts    
requir$ by ! ,secret>y4  7#c7           
,additional requirem5ts ,= purposes (   
?is subsection1 rules simil> to ! rules 
( p>agraphs 7#c71 7#d71 & 7#e7 ( section
 #djh ( ! ,int]nal ,rev5ue ,code ( #aihf
 %all apply4  7h7 ,adju/m5t = inflation 
7#a7 ,9 g5]al ,= ea* cal5d> ye> beg9n+  
aft] #bjae1 ! doll> am\nts "u sections  
#c7;d77#a71 #d7;c77#c77;,c71 &          
#d7;d77#b7 %all ea* be increas$ by su*  
doll> am\nt multipli$ by ! co/-(-liv+   
adju/m5t det]m9$ "u section #a7;f77#c7 (
 ! ,int]nal ,rev5ue ,code ( #aihf       
det]m9$ by sub/itut+ cal5d> ye> #bjad = 

cal5d> ye> #aiib 9 subp>agraph 7,b7     
!re(4  7#b7 ,r\nd+ ,if any am\nt adju/$ 
"u clause 7i7 is n a multiple ( #ej1 su*
 am\nt %all be r\nd$ to ! next l[e/     
multiple ( #ej4  #e4 ,assignm5t1        
ali5ation1 & treatm5t ( deceas$         
individuals  7a7 ,assignm5t & ali5ation 
,"u regulations :i* %all be prescrib$ by
 ! ,executive ,director1 rules relat+ to
 assignm5t & ali5ation applicable "u    
*apt] #hd ( title #e1 ,unit$ ,/ates     
,code1 ) respect to am\nts held 9       
acc\nts 9 ! ,?rift ,sav+s ,fund %all    
apply ) respect to am\nts held 9        
,u,s,accounts 9 ! ,u,s,account ,fund4   
7b7 ,treatm5t ( acc\nts ( deceas$       
individuals ,9 ! case ( a deceas$ acc\nt
 hold] ( a ,u,s,account :i* has an      
acc\nt balance great] ?an z]o1 ^u       
receipt ( notification ( su*            
individual's dea?1 ! ,executive         
,director %all close ! acc\nt & %all    
transf] ! balance 9 su* acc\nt to ! duly
 appo9t$ legal repres5tative ( ! e/ate (
 ! deceas$ acc\nt hold]1 or if !re is no

 su* repres5tative1 to ! p]son or p]sons
 det]m9$ to be entitl$ !reto "u ! laws (
 ! domicile ( ! deceas$ acc\nt hold]4   
#f4 ,rules gov]n+ ,u,s,accounts relat+  
to inve/m5t1 acc\nt+1 & report+  7a7    
,default inve/m5t program ,!            
,u,s,account ,fund ,bo>d %all e/abli% a 
default inve/m5t program "u :i*1 9 a    
mann] simil> to a lifecycle inve/m5t    
program1 sums 9 ea* ,u,s,account are    
allocat$ to inve/m5t funds 9 !          
,u,s,account ,fund bas$ on ! am\nt ( "t 
be=e ! acc\nt hold] atta9s ! age ( #ah4 
,ea* acc\nt hold] ( a ,u,s,account %all 
be enroll$ 9 su* program unless su*     
acc\nt hold]1 9 su* =m & mann] z        
prescrib$ by ! ,executive ,director1    
elects o!rwise4  7b7 ,o!r rules  7#a7 ,9
 g5]al ,"u regulations :i* %all be      
prescrib$ by ! ,executive ,director1 &  
subject to ! provisions ( ?is ,act1 !   
foll[+ provisions %all apply ) respect  
to ! ,u,s,account ,fund & acc\nts       
ma9ta9$ 9 su* ,fund 9 ! same mann] & to 
! same ext5t z su* provisions relate to 

! ,?rift ,sav+s ,fund & ! acc\nts       
ma9ta9$ 9 ! ,?rift ,sav+s ,fund3  7,a7  
,section #hdch ( title #e1 ,unit$ ,/ates
 ,code 7relat+ to inve/m5t ( ! ,?rift   
,sav+s ,fund74  7,b7 ,section #hdci7;b7 
( su* title 7relat+ to engagem5t (      
indep5d5t qualifi$ public acc\ntant74   
7,c7 ,section #hdci7;c7 ( su* title     
7relat+ to p]iodic /atem5ts & summ>y    
descriptions ( inve/m5t options74  7,d7 
,section #hdci7;d7 ( su* title 7relat+  
to assumption ( risk74  7#b7            
,application rules ,= purposes (        
p>agraph 7#a71 ref]5ces 9 su* sections  
#hdch & #hdci to an employee1 ,memb]1   
=m] employee1 or =m] ,memb] %all be     
deem$ ref]5ces to an acc\nt hold] ( a   
,u,s,account 9 ! ,u,s,account ,fund4    
7c7 ,confid5tiality & disclosure  7#a7  
,9 g5]al ,except z o!rwise au?oriz$ by  
,f$]al law1 ! ,u,s,account ,fund ,bo>d1 
! ,executive ,director1 & any employee (
 ! ,u,s,account ,fund ,bo>d %all n      
disclose in=mation ) respect to !       
,u,s,account ,fund & or any acc\nt      

ma9ta9$ 9 su* ,fund4  7#b7 ,disclosure  
to designee ( b5efici>y ,! ,executive   
,director may1 subject to su*           
requirem5ts & conditions z he may       
prescribe by regulations1 disclose su*  
in=mation ) respect to ! ,u,s,account ( 
! b5efici>y to su* p]son or p]sons z !  
b5efici>y may designate 9 a reque/ = or 
cons5t to su* disclosure1 or to any o!r 
p]son at ! b5efici>y's reque/ to ! ext5t
 necess>y to comply ) a reque/ =        
in=mation or assi/ance made by !        
b5efici>y to su* o!r p]son4  #g4        
,u,s,account ,fund ,bo>d  7a7 ,9 g5]al  
,!re is e/abli%$ 9 ! executive bran* ( !
 ,gov]nm5t a ,u,s,account ,fund ,bo>d4  
7b7 ,composition1 duties1 &             
responsibilities ,subject to !          
provisions ( ?is ,act1 ! foll[+         
provisions %all apply ) respect to !    
,u,s,account ,fund ,bo>d 9 ! same mann] 
& to ! same ext5t z su* provisions      
relate to ! ,f$]al ,retirem5t ,?rift    
,inve/m5t ,bo>d3  7#a7 ,section #hdgb ( 
title #e1 ,unit$ ,/ates ,code 7relat+ to

 composition ( ,f$]al ,retirem5t ,?rift 
,inve/m5t ,bo>d74  7#b7 ,section #hdgd (
 su* title 7relat+ to ,executive        
,director74  7#c7 ,section #hdge ( su*  
title 7relat+ to inve/m5t policies74    
7#d7 ,section #hdgf ( su* title 7relat+ 
to adm9i/rative provisions74  #h4       
,fiduci>y responsibilities  7a7 ,9 g5]al
 ,"u regulations ( ! ,secret>y ( ,labor1
 ! provisions ( sections #hdgg & #hdgh (
 title #e1 ,unit$ ,/ates ,code1 %all    
apply 9 connection ) ! ,u,s,account     
,fund & ! acc\nts ma9ta9$ 9 su* ,fund 9 
! same mann] & to ! same ext5t z su*    
provisions apply 9 connection ) ! ,?rift
 ,sav+s ,fund & ! acc\nts ma9ta9$ 9 !   
,?rift ,sav+s ,fund4  7b7 ,inve/igative 
au?ority ,any au?ority available to !   
,secret>y ( ,labor "u section #ejd ( !  
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #aacd7 is   
h]eby made available to ! ,secret>y (   
,labor1 & any (fic] designat$ by !      
,secret>y ( ,labor1 to det]m9e :e!r any 
p]son has violat$1 or is ab\t to        

violate1 any provision applicable "u    
subsection 7a74  7c7 ,exculpatory       
provisions2 insurance  7#a7 ,9 g5]al    
,any provision 9 an agreem5t or in/rum5t
 :i* purports to relieve a fiduci>y f   
responsibility or liability = any       
responsibility1 obligation1 or duty "u  
?is ,act %all be void4  7#b7 ,insurance 
,am\nts 9 ! ,u,s,account ,fund available
 = adm9i/rative exp5ses %all be         
available & may be us$ at ! discretion (
 ! ,executive ,director to pur*ase      
insurance to cov] pot5tial liability (  
p]sons :o s]ve 9 a fiduci>y capacity )  
respect to ! ,fund & acc\nts ma9ta9$    
!re91 )\t reg>d to :e!r a policy (      
insurance p]mits rec\rse by ! insur]    
aga9/ ! fiduci>y 9 ! case ( a brea* ( a 
fiduci>y obligation4  #i4 ,acc\nts      
disreg>d$ 9 det]m9+ eligibility = ,f$]al
 b5efits ,am\nts 9 any ,u,s,account %all
 n be tak5 into acc\nt 9 det]m9+ any    
individual's or h\sehold's f9ancial     
eligibility =1 or am\nt (1 any b5efit or
 s]vice1 paid = 9 :ole or 9 "p ) ,f$]al 

funds1 includ+ /ud5t f9ancial aid4  #aj4
 ,reports ,! ,executive ,director1 9    
consultation ) ! ,secret>y1 %all        
annually transmit a writt5 report to !  
,congress4 ,su* report %all include--   
7#a7 a detail$ description ( ! /atus &  
op]ation ( ! ,u,s,account ,fund & !     
managem5t ( ! ,u,s,accounts1 &  7#b7 a  
detail$ acc\nt+ ( ! adm9i/rative exp5ses
 9 c>ry+ out ?is ,act1 includ+ ! ratio (
 su* adm9i/rative exp5ses to ! balance (
 ! ,u,s,account ,fund & ! me?odology    
adopt$ by ! ,executive ,director =      
allocat+ su* exp5ses among !            
,u,s,accounts4  #aa4 ,tax provisions    
7a7 ,tax treatm5t ( ,u,s,accounts       
,sub*apt] ,f ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new "p3  ,,ix         
,u,s,account ,fund & ,u,s,accounts      
,sec4 #ecj;,a4 ,u,s,account ,fund &     
,u,s,accounts4  #ecj;,a4 ,u,s,account   
,fund & ,u,s,accounts  7a7 ,g5]al ,rule 
,! ,u,s,account ,fund & ,u,s,accounts   
%all be exempt f taxation "u ?is        

subtitle4 ,not)/&+ ! prec$+ s5t5ce1 a   
,u,s,account %all be subject to ! taxes 
impos$ by section #eaa 7relat+ to       
imposition ( tax on unrelat$ bus9ess    
income ( *>itable organizations74  7b7  
,def9itions ,= purposes ( ?is section1 !
 t]ms ,u,s,account ,fund & ,u,s,account 
h ! mean+s giv5 su* t]ms by !           
,u,s,accounts3 ,inve/+ 9 ,am]ica's      
,future ,act ( #bjad4  7c7 ,tax treatm5t
 ( di/ributions ,any am\nt paid or      
di/ribut$ out ( a ,u,s,account--  7#a7  
:i* meets ! di/ribution rules ( !       
,u,s,accounts3 ,inve/+ 9 ,am]ica's      
,future ,act ( #bjad %all n be          
includible 9 gross income1 &  7#b7 :i*  
does n meet ! di/ribution rules (       
section #d7;d7 ( su* ,act %all be       
includ$ 9 ! gross income ( ! acc\nt     
hold]4  4  7b7 ,en=cem5t provisions     
relat+ to private managem5t (           
,u,s,accounts  7#a7 ,excess             
contributions ,section #digc ( !        
,int]nal ,rev5ue ,code ( #aihf 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#e7 a ,u,s,account subject  
to managem5t "u section #d7;g7 ( !      
,u,s,accounts3 ,inve/+ 9 ,am]ica's      
,future ,act ( #bjad1  1 &  7,b7 by add+
 at ! end ! foll[+ new subsection3  7h7 
,excess contributions to privately      
manag$ ,u,s,accounts ,= purposes ( ?is  
section1 9 ! case ( a ,u,s,account      
subject to managem5t "u section #d7;g7 (
 ! ,u,s,accounts3 ,inve/+ 9 ,am]ica's   
,future ,act ( #bjad1 ! t]m excess      
contributions means ! sum (--  7#a7 !   
aggregate am\nt contribut$ = ! taxable  
ye> to ! acc\nt1 &  7#b7 ! am\nt det]m9$
 "u ?is subsection = ! prec$+ taxable   
ye>1 r$uc$ by ! sum (--  7,a7 !         
di/ributions out ( ! acc\nt1 &  7,b7 !  
excess 7if any7 (--  7i7 ! maximum am\nt
 all[able z a contribution "u section   
#d7;c77#c77;,c7 ( ! ,u,s,accounts3      
,inve/+ 9 ,am]ica's ,future ,act ( #bjad
 = ! taxable ye>1 ov]  7ii7 ! am\nt     

contribut$ to ! acc\nt = ! taxable ye>4 
4  7#b7 ,prohibit$ transactions ,section
 #dige ( ! ,int]nal ,rev5ue ,code (     
#aihf is am5d$--  7,a7 by add+ at ! end 
( subsection 7c7 ! foll[+ new p>agraph3 
7#g7 ,special rule = ,u,s,accounts ,an  
individual = ^: b5efit a ,u,s,account   
subject to managem5t "u section #d7;g7 (
 ! ,u,s,accounts3 ,inve/+ 9 ,am]ica's   
,future ,act ( #bjad %all be exempt f ! 
tax impos$ 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 ,u,s,account by   
reason ( ! application ( section        
#ecj;,a7c77#b7 to su* acc\nt4  1 &  7,b7
 9 subsection 7e77#a7 by r$esignat+     
subp>agraph 7,g7 z subp>agraph 7,h7 & by
 ins]t+ aft] subp>agraph 7,f7 ! foll[+  
new subp>agraph3  7,g7 a ,u,s,account   
subject to managem5t "u section #d7;g7 (
 ! ,u,s,accounts3 ,inve/+ 9 ,am]ica's   
,future ,act ( #bjad1  4  7c7 ,increase 
9 *ild tax cr$it  7#a7 ,9 g5]al ,section

 #bd ( ! ,int]nal ,rev5ue ,code ( #aihf 
is am5d$ by add+ at ! end ! foll[+3  7g7
 ,u,s,account contributions ,= purposes 
( ?is section--  7#a7 ,9 g5]al ,! am\nt 
all[$ z a cr$it "u subsection 7a7 %all  
be increas$ by ! ,u,s,account           
contribution am\nt4  7#b7 ,u,s,account  
contribution am\nt ,! t]m ,u,s,account  
contribution am\nt means ) respect to   
ea* qualify+ *ild ! am\nt contribut$ by 
! taxpay] to ! ,u,s,account ( ! taxpay] 
= ! taxable ye> :i* is tak5 into acc\nt 
"u section #d7;d77#b77;,b77i7 ( !       
,u,s,accounts3 ,inve/+ 9 ,am]ica's      
,future ,act ( #bjad4  7#c7 ,limitation 
,! am\nt "u p>agraph 7#b7 %all be r$uc$ 
7b n bel[ z]o7 "u subsection 7b77#a7 9 !
 same mann] z ! cr$it "u subsection 7a7 
is r$uc$ "u subsection 7b77#a74  7#d7   
,am\nt fully refundable ,! aggregate    
cr$its all[$ to ! taxpay] "u subp>t ,c  
%all be increas$ by ! am\nt ( ! increase
 "u ?is subsection & su* am\nt--  7,a7  
%all n be treat$ z a cr$it all[$ "u ?is 
subp>t1 &  7,b7 %all r$uce ! am\nt (    

cr$it o!rwise all[able "u subsection 7a7
 )\t reg>d to section #bf7;a74  4  7#b7 
,effective date ,! am5dm5t made by      
subsection 7a7 %all apply to taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjad4