,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #ggd  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,febru>y #ae1 #bjac   
,mr4 ,g>dn] 7= himself1 ,mr4 ,c(fman1   
,mrs4 ,lummis1 ,mr4 ,d5ham1 ,mr4        
,b5i%ek1 ,mrs4 ,blackburn1 ,mr4 ,gohm]t1
 ,mr4 ,la,malfa1 ,mr4 ,walb]g1 & ,mr4   
,wilson ( ,s\? ,c>ol9a7 introduc$ !     
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,ways & ,means  ,a ,,bill 
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to e/abli% small bus9ess />t-up   
sav+s acc\nts4  #a4 ,%ort title ,?is    
,act may be cit$ z ! ,small ,bus9ess    
,/>t-up ,sav+s ,acc\nts ,act ( #bjac4   
#b4 ,e/abli%m5t ( ,small ,bus9ess       
,/>t-,up ,sav+s ,acc\nts  7a7 ,9 g5]al  
,*apt] #gg ( ! ,int]nal ,rev5ue ,code ( 
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #gebi4 ,small ,bus9ess   
,/>t-,up ,sav+s ,acc\nts  7a7 ,9 g5]al  
,an individual or an eligible small     
bus9ess may ent] into an agreem5t ) !   
,secret>y to e/abli% a small bus9ess    
/>t-up sav+s acc\nt4  7b7 ,small bus9ess

 />t-,up sav+s acc\nt ,= purposes ( ?is 
section1 ! t]m small bus9ess />t-up     
sav+s acc\nt means a tru/ creat$ or     
organiz$ 9 ! ,unit$ ,/ates = ! b5efit ( 
! acc\nt b5efici>y1 b only if ! writt5  
gov]n+ in/rum5t creat+ ! tru/ meets !   
foll[+ requirem5ts3  7#a7 ,except z     
provid$ 9 subsection 7d77#c7 9 ! case ( 
a rollov] contribution1 no contribution 
w be accept$ unless x is 9 ca%1 &       
contributions w n be accept$ = ! taxable
 ye> on behalf ( any acc\nt b5efici>y 9 
excess ( ! am\nt 9 effect = su* taxable 
ye> "u subsection 7d77#b74  7#b7 ,!     
tru/ee is a bank 7z def9$ 9 section     
#djh7n77 or su* o!r p]son :o demon/rates
 to ! satisfaction ( ! ,secret>y t !    
mann] 9 :i* su* o!r p]son w adm9i/] !   
tru/ w be consi/5t ) ! requirem5ts ( ?is
 section4  7#c7 ,no "p ( ! tru/ funds w 
be inve/$ 9 life insurance contracts4   
7#d7 ,! int]e/ ( an individual 9 !      
balance ( 8 acc\nt is non=feitable4     
7#e7 ,! assets ( ! tru/ w n be comm+l$ )
 o!r prop]ty except 9 a common tru/ fund

 or common inve/m5t fund4  7c7 ,eligible
 small bus9ess ,= purposes ( ?is        
section1 ! t]m eligible small bus9ess   
means1 ) respect to any taxable ye>1 any
 p]son engag$ 9 a trade or bus9ess if ! 
av]age numb] ( employees employ$ by su* 
p]son on bus9ess days dur+ ! taxable ye>
 0 #ejj or few]4  7d7 ,treatm5t (       
contributions  7#a7 ,9 g5]al ,!re %all  
be all[$ z a d$uction = ! taxable ye> an
 am\nt equal to s mu* ( ! acc\nt        
b5efici>y's contributions = ! taxable   
ye> to all small bus9ess />t-up sav+s   
acc\nts ma9ta9$ = ! b5efit ( su*        
b5efici>y z d n exce$ ! contribution    
limitations 9 effect = ! taxable ye> "u 
p>agraph 7#b74  7#b7 ,contribution      
limitation  7,a7 ,9 g5]al ,! am\nt      
all[able z a d$uction "u p>agraph 7#a7 )
 respect to all small bus9ess />t-up    
sav+s acc\nts ma9ta9$ = ! b5efit ( any  
p]son %all n exce$ ! less] (--  7i7     
#aj1jjj1 or  7ii7 #aej1jjj1 r$uc$ by !  
aggregate contributions by su* p]son =  
all taxable ye>s ) respect to all small 

bus9ess />t-up sav+s acc\nts ( !        
taxpay]4  7,b7 ,co/ ( liv+ adju/m5t  7i7
 ,9 g5]al ,9 ! case ( a taxable ye>     
beg9n+ aft] #bjac1 ! #aj1jjj am\nt 9    
subp>agraph 7,a7 %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 #a7;f77#c7 =
 ! cal5d> ye> 9 :i* ! taxable ye> beg9s1
 det]m9$ by sub/itut+ cal5d> ye> #bjab =
 cal5d> ye> #aiib 9 subp>agraph 7,b7    
!re(4  7ii7 ,r\nd+ ,if any am\nt z      
adju/$ "u clause 7i7 is n a multiple (  
#ejj1 su* am\nt %all be r\nd$ to ! next 
l[e/ multiple ( #ejj4  7#c7 ,rollov]s f 
retirem5t plans n all[$ ,"u regulations 
prescrib$ by ! ,secret>y1 a p]son may   
make a rollov] contribution to a small  
bus9ess />t-up sav+s acc\nt only 9 !    
case ( a rollov] f ano!r small bus9ess  
/>t-up sav+s acc\nt4  7#d7 ,treat$ z    
d$uction = individuals & corporations ,=
 purposes ( *apt] #a1 ! d$uction all[$  
"u p>agraph 7#a7 %all be treat$ z a     
d$uction specifi$ 9 "p ,,vi ( sub*apt]  

,b ( *apt] #a 7relat+ to itemiz$        
d$uctions = individuals & corporations74
  7e7 ,treatm5t ( di/ributions  7#a7    
,tax treatm5t  7,a7 ,exclusion (        
qualifi$ di/ributions ,any qualifi$     
di/ribution f a small bus9ess />t-up    
sav+s acc\nt %all n be includible 9     
gross income4  7,b7 ,inclusion ( o!r    
di/ributions ,any di/ribution f a small 
bus9ess />t-up sav+s acc\nt :i* is n a  
qualifi$ di/ribution %all be includ$ 9  
gross income4  7#b7 ,qualifi$           
di/ribution ,= purposes ( ?is           
subsection1 ! t]m qualifi$ di/ribution  
means1 ) respect to any taxable ye>1 any
 paym5t or di/ribution f a small bus9ess
 />t-up sav+s acc\nt--  7,a7 to ! ext5t 
! am\nt ( su* paym5t or di/ribution does
 n exce$ ! sum (--  7i7 ! aggregate     
am\nts paid or incurr$ by ! taxpay] =   
su* taxable ye> ) respect to ! taxpay]'s
 trade or bus9ess = ! pur*ase ( equipm5t
 or facilities1 m>ket+1 tra9+1          
incorporation1 & acc\nt+ fees1 &  7ii7 !
 aggregate capital contributions ( !    

taxpay] ) respect to an eligible small  
bus9ess = ! taxable ye> 7b only to !    
ext5t su* am\nts are us$ by su* small   
bus9ess = purposes describ$ 9 clause    
7i771 &  7,b7 :i*1 9 ! case ( a paym5t  
or di/ribution subsequ5t to ! fir/      
paym5t or di/ribution f su* acc\nt 7or  
any pr$ecessor to su* acc\nt7--  7i7 is 
made n lat] ?an ! close ( ! #e? taxable 
ye> beg9n+ aft] ! date ( su* fir/ paym5t
 or di/ribution1 &  7ii7 is made )      
respect to ! same eligible small bus9ess
 ) respect to :i* su* fir/ paym5t or    
di/ribution 0 made4  7#c7 ,treatm5t aft]
 dea? ( acc\nt b5efici>y  7,a7 ,9 g5]al 
,if1 by reason ( ! dea? ( ! acc\nt      
b5efici>y1 any p]son acquires ! acc\nt  
b5efici>y's int]e/ 9 a small bus9ess    
/>t-up sav+s acc\nt--  7i7 su* acc\nt   
%all cease to be a small bus9ess />t-up 
sav+s acc\nt z ( ! date ( dea?1 &  7ii7 
an am\nt equal to ! fair m>ket value ( !
 assets 9 su* acc\nt on su* date %all be
 includible--  7,i7 9 ! case ( a p]son  
:o is n ! e/ate ( su* b5efici>y1 9 su*  

p]son's gross income = ! taxable ye> :i*
 includes su* date1 or  7,,ii7 9 ! case 
( a p]son :o is ! e/ate ( su* b5efici>y1
 9 su* b5efici>y's gross income = ! la/ 
taxable ye> ( su* b5efici>y4  7,b7      
,special rules  7i7 ,r$uction (         
inclusion = pr$ea? exp5ses ,! am\nt     
includible 9 gross income "u subp>agraph
 7,a7 %all be r$uc$ by ! am\nts describ$
 9 p>agraph 7#b7 :i* 7 incurr$ by !     
dec$5t be=e ! date ( ! dec$5t's dea? &  
paid by su* p]son )9 #a ye> aft] su*    
date4  7ii7 ,d$uction = e/ate taxes ,an 
appropriate d$uction %all be all[$ "u   
section #fia7;c7 to any p]son 7o!r ?an !
 dec$5t7 ) respect to am\nts includ$ 9  
gross income "u subp>agraph 7,a77ii77,i7
 by su* p]son4  7#d7 ,treatm5t = failure
 to be treat$ z eligible small bus9ess  
,if = any taxable ye> a taxpay] :i*     
holds a small bus9ess />t-up sav+s      
acc\nt z an eligible small bus9ess      
ceases to be an eligible small bus9ess--
  7,a7 su* acc\nt %all cease to be a    
small bus9ess />t-up sav+s acc\nt1 &    

7,b7 ! balance ( su* acc\nt %all be     
treat$ z paid out = su* taxable ye> 9 a 
di/ribution :i* is n a qualifi$         
di/ribution4  7f7 ,special rules  7#a7  
,d5ial ( d\ble b5efit ,any d$uction or  
cr$it o!rwise all[$ = ! taxable ye> )   
respect to am\nts describ$ 9 subsection 
7e77#b77;,a7 %all be r$uc$ by an am\nt  
equal to ! qualifi$ di/ributions        
attributable to su* am\nts4 ,! adju/$   
basis ( any prop]ty plac$ 9 s]vice = !  
taxable ye> %all be r$uc$ by ! am\nt (  
any qualifi$ di/ributions attributable  
to su* prop]ty4 ,= purposes ( ?is       
p>agraph1 qualifi$ di/ributions %all    
fir/ be treat$ z attributable to am\nts 
describ$ 9 subsection 7e77#b77;,a71 !n  
to prop]ty plac$ 9 s]vice = ! taxable   
ye>4  7#b7 ,aggregation rule ,= purposes
 ( ?is section1 all p]sons treat$ z a   
s+le employ] "u subsection 7a7 or 7b7 ( 
section #eb1 or subsection 7m7 or 7o7 ( 
section #dad1 %all be treat$ z "o p]son4
  4  7b7 ,excise tax on excess          
contributions & nonqualifi$ di/ributions

 ,subtitle ,d ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new *apt]3  #ej;,a ,small bus9ess
 />t-up sav+s acc\nts  ,sec4 #ejjj;,d4  
,tax on excess contributions to small   
bus9ess />t-up sav+s acc\nts4 ,sec4     
#ejjj;,e4 ,tax on nonqualifi$           
di/ributions f small bus9ess />t-up     
sav+s acc\nts4 ,sec4 #ejjj;,f4 ,cross   
ref]5ce4  #ejjj;,d4 ,tax on excess      
contributions to small bus9ess />t-up   
sav+s acc\nts  7a7 ,9 g5]al ,9 ! case ( 
a small bus9ess />t-up sav+s acc\nt 7)9 
! mean+ ( section #gebi7 !re is impos$ =
 ea* taxable ye> a tax 9 an am\nt equal 
to #f p]c5t ( ! am\nt ( ! excess        
contributions to su* taxpay]'s acc\nt   
7det]m9$ z ( ! close ( ! taxable ye>74  
7b7 ,limitation ,! am\nt ( tax impos$ by
 subsection 7a7 %all n exce$ #f p]c5t ( 
! value ( ! acc\nt 7det]m9$ z ( ! close 
( ! taxable ye>74  7c7 ,excess          
contributions ,= purposes ( ?is section1
 9 ! case ( contributions to all small  
bus9ess />t-up sav+s acc\nts ma9ta9$ = !

 b5efit ( a p]son1 ! t]m excess         
contributions means ! sum (--  7#a7 !   
excess 7if any7 (--  7,a7 ! am\nt       
contribut$ to su* acc\nts = ! taxable   
ye>1 ov]  7,b7 ! am\nt all[able z a     
contribution "u section                 
#gebi7;d77#b77;,a7 = su* taxable 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
 = ! taxable ye>1 &  7,b7 ! excess 7if  
any7 (--  7i7 ! maximum am\nt all[able z
 a contribution "u section              
#gebi7;d77#b77;,a7 = su* taxable ye>1   
ov]  7ii7 ! am\nt contribut$ to su*     
acc\nts = su* taxable ye>4  #ejjj;,e4   
,tax on nonqualifi$ di/ributions f small
 bus9ess />t-up sav+s acc\nts  7a7 ,9   
g5]al ,if = any taxable ye> an am\nt is 
paid or di/ribut$ out ( a taxpay]'s     
small bus9ess />t-up sav+s acc\nt1 !re  
is impos$ = su* taxable ye> a tax 9 an  
am\nt equal to #aj p]c5t ( ! portion (  
su* am\nt :i* is includible 9 ! gross   
income ( ! taxpay]4  7b7 ,exception =   

disability or dea? ,subsection 7a7 %all 
n apply if ! paym5t or di/ribution is   
made aft] ! acc\nt b5efici>y becomes    
disabl$ )9 ! mean+ ( section #gb7m77#g7 
7b only if su* b5efici>y's acc\nt 0     
creat$ be=e becom+ s disabl$7 or dies4  
#ejjj;,f4 ,cross ref]5ce ,= prohibit$   
transactions1 see section #dige4  4  7c7
 ,prohibit$ transactions  7#a7 ,9 g5]al 
,p>agraph 7#a7 ( section #dige7;e7 ( su*
 ,code is am5d$ by /rik+ or at ! end (  
subp>agraph 7,f71 by /rik+ ! p]iod at ! 
end ( subp>agraph & ins]t+ 1 or1 & by   
add+ at ! end ! foll[+ new subp>agraph3 
7,h7 a small bus9ess />t-up sav+s acc\nt
 7)9 ! mean+ ( section #gebi74  4  7#b7 
,special rule = ceas+ to be a small     
bus9ess />t-up sav+s acc\nt ,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 = small bus9ess />t-up    
sav+s acc\nt ,an individual = ^: b5efit 
a small bus9ess />t-up sav+s acc\nt 7)9 
! mean+ ( section #gebi7 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 small bus9ess />t-up sav+s acc\nt by  
reason ( ! application ( p>agraph 7#c7  
or 7#d7 ( section #gebi7;e7 to su*      
acc\nt4  4  7d7 ,d$uction all[$ :e!r or 
n individual itemizes ,subsection 7a7 ( 
section #fb ( su* ,code is am5d$ by     
ins]t+ aft] p>agraph 7#ba7 ! foll[+ new 
p>agraph3  7#bb7 ,contributions to small
 bus9ess />t-up sav+s acc\nts ,!        
d$uction all[$ by section               
#gebi7;d77#a77;,a74  4  7e7 ,con=m+     
am5dm5ts  7#a7 ,! table ( *apt]s =      
subtitle ,d su* ,code is am5d$ by add+  
at ! end ! foll[+ new item3  ,*apt]     
#ej;,a4 ,small ,bus9ess ,/>t-,up ,sav+s 
,acc\nts4  4  7#b7 ,! table ( sections =
 *apt] #gg ( su* ,code is am5d$ by      
ins]t+ aft] ! item relat+ to section    
#gebh ! foll[+ new item3  ,sec4 #gebi4  
,small ,bus9ess ,/>t-,up ,sav+s         

,acc\nts4  4  7f7 ,effective date ,!    
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjab4