,,ii #aacth ,,congress #b;d ,session ,s4 #bhib ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #ah1 #bjad ,mr4 ,kirk 7for himself and ,mr4 ,vitter7 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 ,coverdell education savings accounts4 #a4 ,short title ,this ,act may be cited as the #dja7,kids7 ,education ,savings ,account ,act of #bjad4 #b4 ,elimination of income-based reduction in permitted contributions to ,coverdell education savings accounts ,paragraph 7#a7 of section #ecj7;c7 of the ,internal ,revenue ,code of #aihf is amended by striking to an account under this section and inserting to an account under this section in a taxable year beginning before ,january #a1 #bjae14 #c4 ,increase in annual contribution limitation for ,coverdell education savings accounts 7a7 ,in general ,clause 7iii7 of section #ecj7;b77#a77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking #b1jjj and inserting the dollar amount in effect under section #bejc7;b7 7relating to exclusion from gifts7 for the taxable year4 7b7 ,effective date ,the amendment made by this section shall apply to contributions made in taxable years beginning after ,december #ca1 #bjad4 #d4 ,allowance of home school expenses as qualified education expenses for purposes of a ,coverdell education savings account 7a7 ,in general ,paragraph 7#c7 of section #ecj7;b7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,c7 ,private school ,for purposes of this section1 the term private school includes any home school that meets the requirements of ,state law applicable to such home schools1 whether or not such school is deemed a private school for purposes of ,state law4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjad4 #e4 ,qualified distributions from a ,coverdell education savings account 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 #aihf1 as amended by this ,act1 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 of section #ecj7;b7 of the ,internal ,revenue ,code of #aihf1 as redesignated by subsection 7b71 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 ,december #ca1 #bjad4 #f4 ,qualified rollover contributions from ,coverdell education 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 ,coverdell education 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 ,coverdell education 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 ,december #ca1 #bjad4