,,ii  #aacth ,,congress  #ast ,session  
,s4 #aeae  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #ah1
 #bjac,mr4 ,kirk introduced the         
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to improve and  
expand education savings accounts4  #a4 
,short title ,this ,act may be cited as 
the #dja,kids ,family ,savings ,act of  
#bjac4  #b4 ,conversion of ,coverdell   
education savings accounts to #dja,kids 
savings accounts  7a7 ,in general       
,section #ecj of the ,internal ,revenue 
,code of #aihf is amended by striking   
,coverdell education savings account    
each place it appears in subsection 7a71
 subsection 7b77#a71 subsection 7b77#d71
 subsection 7d77#d77;,a71 subsection    
7d77#e71 subsection 7d77#f71 subsection 
7d77#i71 and subsection 7h71 and        
inserting #dja,kids savings account4    
7b7 ,conforming amendments  7#a7 ,the   
heading of section #ecj of the ,internal

 ,revenue ,code of #aihf is amended by  
striking ,coverdell education savings   
accounts and inserting #dja,kids savings
 accounts4  7#b7 ,the heading of        
paragraph 7#a7 of section #ecj7;b7 of   
such ,code is amended by striking       
,coverdell education savings account and
 inserting #dja,kids savings account4   
7#c7 ,section #bf7;b77#b77;,e7 of such  
,code is amended by striking ,coverdell 
education savings accounts and inserting
 #dja,kids savings accounts4  7#d7      
,section #gb7;e77#i7 of such ,code is   
amended by striking ,coverdell education
 savings account and inserting #dja,kids
 savings account4  7#e7 ,the heading of 
paragraph 7#i7 of section #gb7;e7 of    
such ,code is amended by striking       
,coverdell education savings accounts   
and inserting #dja,kids savings         
accounts4  7#f7 ,section                
#ace7;c77#b77;,c7 of such ,code is      
amended by striking ,coverdell education
 savings account and inserting #dja,kids
 savings account4  7#g7 ,the heading of 

subparagraph 7,c7 of section            
#ace7;c77#b7 of such ,code is amended by
 striking ,coverdell education savings  
accounts and inserting #dja,kids savings
 accounts4  7#h7 ,section               
#djh;,a7e77#b77;,a77ii7 of such ,code is
 amended by striking ,coverdell         
education savings account and inserting 
#dja,kids savings account4  7#i7 ,the   
heading of clause 7vi7 of section       
#ebi7;c77#c77;,b7 of such ,code is      
amended by striking ,coverdell education
 savings accounts and inserting         
#dja,kids savings accounts4  7#aj7      
,section #ebi7;c77#f7 of such ,code is  
amended by striking ,coverdell education
 savings account and inserting #dja,kids
 savings account4  7#aa7 ,section       
#hgg;,a7e77#b7 of such ,code is amended 
by striking ,coverdell education savings
 account and inserting #dja,kids savings
 account4  7#ab7 ,section #digc7;a77#d7 
of such ,code is amended by striking    
,coverdell education savings account and
 inserting #dja,kids savings account4   

7#ac7 ,section #digc7;e77#a7 of such    
,code is amended by striking ,coverdell 
education savings accounts and inserting
 #dja,kids savings accounts4  7#ad7     
,section #digc7;e77#b77;,a7 of such     
,code is amended by striking ,coverdell 
education savings account and inserting 
#dja,kids savings account4  7#ae7 ,the  
heading of subsection 7e7 of section    
#digc of such ,code is amended by       
striking ,coverdell education savings   
accounts and inserting #dja,kids savings
 accounts4  7#af7 ,section #dige7;c77#e7
 of such ,code is amended by striking   
,coverdell education savings account and
 inserting #dja,kids savings account4   
7#ag7 ,the heading of paragraph 7#e7 of 
section #dige7;c7 of such ,code is      
amended by striking ,coverdell education
 savings accounts and inserting         
#dja,kids savings accounts4  7#ah7      
,section #dige7;e77#a77;,f7 of such     
,code is amended by striking ,coverdell 
education savings account and inserting 
#dja,kids savings account4  7#ai7       

,section #ffic7;a77#b77;,e7 of such     
,code is amended by striking ,coverdell 
education savings accounts and inserting
 #dja,kids savings accounts4  7#bj7 ,the
 heading of part ,,viii of subchapter ,f
 of chapter #a of such ,code is amended 
by striking ,higher education savings   
and inserting ,education and children's 
savings4  7c7 ,clerical amendments  7#a7
 ,the item relating to part ,,viii in   
the table of parts for subchapter ,f of 
chapter #a of the ,internal ,revenue    
,code of #aihf is amended to read as    
follows3  ,part ,,viii4 ,education and  
children's savings entities  4  7#b7    
,the table of sections for part ,,viii  
of subchapter ,f of chapter #a of such  
,code is amended by striking the item   
relating to section #ecj and inserting  
the following new item3  ,sec4 #ecj4    
#dja,kids savings accounts4  4  7d7     
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after the date of the   
enactment of this ,act4  #c4 ,qualified 

distributions for first home purchases  
7a7 ,in general ,paragraph 7#a7 of      
section #ecj7;b7 of the ,internal       
,revenue ,code of #aihf is amended by   
striking qualified education expenses   
and inserting qualified expenses4  7b7  
,qualified expenses ,subsection 7b7 of  
section #ecj of the ,internal ,revenue  
,code of #aihf is amended by            
redesignating paragraphs 7#b71 7#c71 and
 7#d7 as paragraphs 7#d71 7#e71 and     
7#f71 respectively1 and by inserting    
after paragraph 7#a7 the following new  
paragraphs3  7#b7 ,qualified expenses   
,the term qualified expenses means--    
7,a7 qualified first-time homebuyer     
expenses1 and  7,b7 qualified education 
expenses4  7#c7 ,qualified first-time   
homebuyer expenses  7,a7 ,in general    
,the term qualified first-time homebuyer
 expenses means1 in the case of a       
designated beneficiary who is a         
first-time homebuyer1 the qualified     
acquisition costs with respect to a     
principal residence of such beneficiary4

  7,b7 ,definitions ,the terms          
first-time homebuyer1 qualified         
acquisition costs1 and principal        
residence have the same meaning as when 
used in section #gb7t77#h74  4  7c7     
,conforming amendments  7#a7 ,paragraph 
7#d77;,a77ii7 7as redesignated by       
subsection 7b77 of section #ecj7;b7 of  
the ,internal ,revenue ,code of #aihf is
 amended by striking as defined in      
paragraph 7#c7 and inserting as defined 
in paragraph 7#e74  7#b7 ,subparagraphs 
7,a71 7,b71 and 7,d7 of section         
#ecj7;d77#a7 of such ,code are each     
amended by striking qualified education 
expenses each place it appears and      
inserting qualified expenses4  7#c7 ,the
 heading of paragraph 7#b7 of section   
#ecj7;d7 of such ,code is amended by    
striking education expenses and         
inserting expenses4  7#d7 ,the heading  
of paragraph 7#d7 of section #ecj7;d7 of
 such ,code is amended by striking      
educational expenses and inserting      
expenses4  7#e7 ,subclause 7,i7 of      

section #ebi7;c77#c77;,b77vi7 of such   
,code is amended by striking to which   
clauses 7i7 and 7ii7 and section        
#ecj7;d77#b77;,a7 apply and inserting   
for qualified higher education expenses 
to which clauses 7i7 and 7ii7 apply and 
for qualified education expenses to     
which section #ecj7;d77#b77;,a7 applies4
  7#f7 ,clause 7vi7 of section          
#ebi7;c77#c77;,b7 of such ,code is      
amended by striking and section         
#ecj7;d77#b77;,a74 and inserting and the
 amount of the exclusion with respect to
 qualified education expenses under     
section #ecj7;d77#b77;,a744  7d7        
,effective date ,the amendments made by 
this section shall apply to             
distributions made in taxable years     
beginning after the date of the         
enactment of this ,act4  #d4 ,qualified 
rollover contributions from #dja,kids   
savings accounts to ,roth ,i,r,as  7a7  
,in general ,paragraph 7#e7 of section  
#ecj7;d7 of the ,internal ,revenue ,code
 of #aihf is amended by inserting 1 or  

into a ,roth ,,ira of the beneficiary   
after as of such date4  7b7 ,conforming 
amendment2 technical correction         
,paragraph 7#a7 of section #djh;,a7e7 of
 the ,internal ,revenue ,code of #aihf  
is amended to read as follows3  7#a7 ,in
 general ,the term qualified rollover   
contribution means a rollover           
contribution to a ,roth ,,ira from      
another such account1 from an eligible  
retirement plan 7as defined in section  
#djb7;c77#h77;,b771 or from a #dja,kids 
savings account 7as defined in section  
#ecj7;b77#a771 but only if-- 7,a7 such  
rollover contribution meets the         
requirements of section #djh7;d77#c71   
7,b7 in the case of a rollover          
contribution from an eligible retirement
 plan described in clause 7iii71 7iv71  
7v71 or 7vi7 of section                 
#djb7;c77#h77;,b71 such contribution    
meets the requirements of section       
#djb7;c71 #djc7;b77#h71 or              
#deg7;e77#af71 whichever is applicable1 
and  7,c7 in the case of a rollover     

contribution from a #dja,kids savings   
account1 such contribution meets the    
requirements of section #ecj7;d77#e74   
,for purposes of section                
#djh7;d77#c77;,b71 there shall be       
disregarded any qualified rollover      
contribution from an individual         
retirement plan 7other than a ,roth     
,,ira7 to a ,roth ,,ira4  4  7c7        
,effective date ,the amendments made by 
this section shall apply to rollover    
contributions made in taxable years     
beginning after the date of the         
enactment of this ,act4