,i  #aadth ,,congress  #ast ,session    
,h4 ,r4 #djde  ,,in ,,the ,,house ,,of  
,,representatives  ,november #ag1 #bjae 
,mr4 ,crowley 7for himself and ,mr4     
,ellison7 introduced the following bill2
 which was referred to the ,committee on
 ,ways and ,means  ,a ,,bill  ,to       
establish ,u,s,accounts1 and for other  
purposes4  #a4 ,short title2 table of   
contents  7a7 ,short title ,this ,act   
may be cited as the ,u,s,accounts3      
,investing in ,america's ,future ,act of
 #bjae4  7b7 ,table of contents ,the    
table of contents for this ,act is as   
follows3  ,sec4 #a4 ,short title2 table 
of contents4 ,sec4 #b4 ,findings4 ,sec4 
#c4 ,u,s,account ,fund4 ,sec4 #d4       
,u,s,accounts4 ,sec4 #e4 ,assignment1   
alienation1 and treatment of deceased   
individuals4 ,sec4 #f4 ,rules governing 
,u,s,accounts relating to investment1   
accounting1 and reporting4 ,sec4 #g4    
,u,s,account ,fund ,board4 ,sec4 #h4    
,fiduciary responsibilities4 ,sec4 #i4  
,accounts disregarded in determining    

eligibility for ,federal benefits4 ,sec4
 #aj4 ,reports4 ,sec4 #aa4 ,tax         
provisions4,sec4 #ab4 ,earned ,income   
,tax ,credit outreach4  7c7 ,definitions
 ,for purposes of this ,act-- 7#a7      
,u,s,account ,fund ,the term            
,u,s,account ,fund means the fund       
established under section #c4  7#b7     
,u,s,account ,the term ,u,s,account     
means an account established under      
section #d4  7#c7 ,secretary ,the term  
,secretary means the ,secretary of the  
,treasury or the ,secretary's delegate4 
7#d7 ,u,s,account ,fund ,board ,the term
 ,u,s,account ,fund ,board means the    
board established pursuant to section   
#g4  7#e7 ,executive ,director ,the term
 ,executive ,director means the         
executive director appointed pursuant to
 section #g4  #b4 ,findings ,the        
,congress finds the following3 7#a7     
,americans recognize the importance of  
savings to create a more secure         
financial future for their family but   
barriers to entry have blocked          

participation in savings programs1      
leading to drastic disparities in asset 
building and wealth creation4  7#b7     
,most working families in ,america lack 
savings and face financial insecurity as
 a result4 ,forty-four percent of       
families are liquid asset poor1 meaning 
they lack accessible savings to survive 
for three months at the ,federal poverty
 level4  7#c7 ,of that number1 over     
two-thirds of ,african-,americans 7#fg  
percent7 could be considered liquid     
asset poor as are nearly three-fourths  
of ,latinos 7#ga percent74  7#d7        
,families with children face additional 
barriers to building savings4 ,these    
families are more likely than childless 
households to live in asset poverty4    
7#e7 ,there is a strong link between    
savings and economic opportunity4       
,children in the poorest fifth of       
households who manage to move up the    
income ladder as adults have almost ten 
times the wealth of those who remain at 
the bottom4  7#f7 ,children's savings   

accounts programs are evidence-based and
 have been tested throughout the        
country4 ,in #bjjc1 the ,saving for     
,education1 ,entrepreneurship1 and      
,downpayment 7,,seed7 national          
demonstration project was established to
 evaluate the policy and practice of    
savings accounts for children4 ,,seed   
found that even very low-income parents 
will save and invest for their          
children's future if given the          
opportunity4  7#g7 ,in #bjaa1 the city  
of ,san ,francisco began offering child 
savings accounts1 expanding them to all 
children enrolled in public kindergarten
 starting in #bjac4 ,their experiment   
proves what ,,seed documented in        
#bjjc--very low-income parents will save
 and invest for their children's future 
if given the opportunity4  7#h7 ,data   
from ,san ,francisco's nascent          
,kindergarten to ,college ,account      
program demonstrates that families1 even
 those of lower income1 are contributing
 their own funds towards their child's  

education at a rate of four times higher
 than ,americans of all income limits   
are towards tax advantaged #ebi college 
savings plans4  7#i7 ,even a small      
amount of children's savings can have a 
significant impact on college success1 a
 key driver of economic mobility4 ,low- 
and moderate-income children with less  
than #ejj saved for college are three   
times more likely to enroll in college  
and four times more likely to graduate  
than children with no savings4  7#aj7   
,in the #d years that the ,san          
,francisco ,pilot program has been in   
existence1 families have deposited over 
#a million in new savings1 helping to   
build assets for participating families4
  7#aa7 ,in order to expand economic    
opportunity and spur economic growth1   
the ,united ,states should promote      
savings and investments for all         
,americans4  #c4 ,u,s,account ,fund  7a7
 ,establishment ,there is established in
 the ,treasury of the ,united ,states a 
fund to be known as the ,u,s,account    

,fund4  7b7 ,amounts held by ,fund ,the 
,u,s,account ,fund consists of the sum  
of all amounts paid into the ,fund under
 this ,act1 increased by the total net  
earnings from investments of sums held  
in the ,fund or reduced by the total net
 losses from investments of sums held in
 the ,fund1 and reduced by the total    
amount of payments made from the ,fund  
7including payments for administrative  
expenses74  7c7 ,use of ,fund  7#a7 ,in 
general ,the sums in the ,u,s,account   
,fund are appropriated and shall remain 
available without fiscal year           
limitation--  7,a7 to make contributions
 to ,u,s,accounts1  7,b7 to invest under
 section #f1  7,c7 to make distributions
 in accordance with this ,act1  7,d7 to 
pay the administrative expenses of      
carrying out this ,act1 and  7,e7 to    
purchase insurance as provided in       
section #h7;c77#b74  7#b7 ,exclusive    
purposes ,the sums in the ,u,s,account  
,fund shall not be appropriated for any 
purpose other than the purposes         

specified in this section and may not be
 used for any other purpose4  7d7       
,transfers to ,u,s,account ,fund ,the   
,secretary shall make transfers from the
 general fund of the ,treasury to the   
,u,s,account ,fund as follows3  7#a7    
,automatic contribution ,upon receipt of
 a certification under section          
#d7;b77#b7 with respect to an           
individual1 the ,secretary shall        
transfer #ejj to the ,u,s,account of the
 individual4  7#b7 ,matching            
contributions ,upon receipt of each     
certification under section #d7;d7 with 
respect to an individual1 the ,secretary
 shall transfer the matching amount to  
the ,u,s,account of the individual4  7e7
 ,private contributions ,the ,executive 
,director shall pay into the            
,u,s,account ,fund such amounts as are  
contributed under section #d7;c74  7f7  
,prohibition on ,use of ,payroll ,taxes 
,to ,fund ,u,s,accounts ,the            
,u,s,account ,fund and ,u,s,accounts are
 wholly separate and unique from the    

,social ,security system4 ,no amount    
from any tax on employment may be       
contributed to the ,u,s,account ,fund or
 ,u,s,accounts4  #d4 ,u,s,accounts  7a7 
,in general  7#a7 ,establishment ,the   
,executive ,director shall establish in 
the ,u,s,account ,fund an account 7to be
 known as a ,u,s,account7 for each      
qualifying account holder certified     
under subsection 7b74 ,each such account
 shall be identified to its account     
holder by means of a unique personal    
identifier currently recognized by the  
,internal ,revenue ,service and shall   
remain in the ,u,s,account ,fund unless 
transferred to private management under 
subsection 7g74  7#b7 ,account balance  
,the balance in an account holder's     
,u,s,account at any time is the excess  
of-- 7,a7 the sum of--  7i7 all deposits
 made into the ,u,s,account ,fund and   
credited to the account under paragraph 
7#c71 and  7ii7 the total amount of     
allocations made to and reductions made 
in the account pursuant to paragraph    

7#d71 over  7,b7 the amounts paid out of
 the account with respect to such       
individual under subsection 7d74  7#c7  
,crediting of contributions ,pursuant to
 regulations which shall be prescribed  
by the ,executive ,director1 the        
,executive ,director shall credit to    
each ,u,s,account the amounts paid into 
the ,u,s,account ,fund under section    
#c7;d7 which are attributable to the    
account holder of such account4  7#d7   
,allocation of earnings and losses ,the 
,executive ,director shall allocate to  
each ,u,s,account an amount equal to the
 net earnings and net losses from each  
investment of sums in the ,u,s,account  
,fund which are attributable1 on a pro  
rata basis1 to sums credited to such    
account1 reduced by an appropriate share
 of the administrative expenses paid out
 of the net earnings1 as determined by  
the ,executive ,director4  7b7          
,qualifying account holder ,for purposes
 of this ,act-- 7#a7 ,in general ,the   
term qualifying account holder means any

 individual who--  7,a7 was born after  
,december #ca1 #bjag1  7,b7 has not yet 
attained the age of #ah years1 and  7,c7
 has a valid1 unique1 ,federal          
,government issued identification number
 recognized by the ,internal ,revenue   
,service4  7#b7 ,certification of       
account holders ,on the date on which a 
qualifying account holder is registered 
for a ,u,s,account1 the ,secretary shall
 certify to the ,executive ,director the
 name of such qualifying account holder4
  7c7 ,private contributions  7#a7 ,in  
general ,the ,executive ,director shall 
accept cash contributions from any      
person 7including churches1 charities1  
private foundations1 businesses1 or     
civic leagues7 for payment into the     
,u,s,account ,fund if such contribution 
is identified 7in such manner as the    
,executive ,director may require7 with  
the account holder of a ,u,s,account to 
whom it is to be credited at the time   
the contribution is made4  7#b7         
,alternative methods of contribution    

7,a7 ,payroll deduction ,under          
regulations prescribed by the ,executive
 ,director and at the election of the   
employer1 contributions under paragraph 
7#a7 may be made through payroll        
deductions4  7,b7 ,tax refunds ,under   
regulations prescribed by the           
,secretary1 contributions under         
paragraph 7#a7 may be made by an        
election to contribute all or a portion 
of the tax refund of the contributor4   
7#c7 ,annual limitation ,no contribution
 may be accepted under paragraph 7#a7-- 
7,a7 unless it is in cash1  7,b7 after  
the date on which the ,u,s,account      
holder ceases to be a qualifying account
 holder1 and  7,c7 except in the case of
 matching contributions under subsection
 7d71 if such contribution would result 
in aggregate contributions for the      
calendar year exceeding #b1jjj4  7d7    
,government matching contribution  7#a7 
,in general ,upon such showing as the   
,executive ,director may require to     
establish the basis for certification1  

the ,executive ,director shall1 with    
respect to each private contribution to 
the account of an account holder which  
is made before such account holder      
attains age #ah1 certify to the         
,secretary the matching amount with     
respect to such contribution4  7#b7     
,matching amount  7,a7 ,in general ,for 
purposes of this subsection1 the term   
matching amount means1 an amount equal  
to #ajj percent of contributions made by
 the account holder 7or a legal guardian
 of the account holder7 to the          
,u,s,account of an individual during any
 calendar year beginning after the      
calendar year in which the ,u,s,account 
is established1 not in excess of #ejj   
for the calendar year4  7,b7 ,phaseout  
based on earned income credit phaseout  
,the #ejj amount in subparagraph 7,a7   
shall be zero if the adjusted gross     
income 7or1 if greater1 the earned      
income7 of the taxpayer for the taxable 
year as exceeds the phaseout amount4    
,for purposes of this paragraph1 terms  

used in the preceding sentence which are
 used in section #cb of the ,internal   
,revenue ,code of #aihf shall have the  
meanings given such terms by such       
section #cb4  7e7 ,distributions  7#a7  
,in general ,no amount may be           
distributed from a ,u,s,account before  
the date on which the account holder    
attains the age of #ah4  7#b7 ,higher   
education expenses ,paragraph 7#a7 shall
 not apply to amounts paid for qualified
 tuition and related expenses 7as       
defined in section #be;,a7f77#a7 of the 
,internal ,revenue ,code of #aihf7 of   
the account holder if the account holder
 is an eligible student 7as defined in  
section #be;,a7b77#c7 of such ,code7    
with respect to such expenses4  7#c7    
,rollover  7,a7 ,in general ,not later  
than #ahj days after the date on which  
the account holder attains the age of   
#ah1 the balance of such individual's   
account shall be transferred to a       
,u,s,account ,,ira established on behalf
 of the individual and shall be treated 

as a rollover contribution which meets  
the requirements of section #djh7;d77#c7
 of such ,code4  7,b7 ,u,s,account ,,ira
  7i7 ,in general ,except as provided in
 clauses 7ii7 and 7iii71 a ,u,s,account 
,,ira is an individual retirement       
account 7as defined in section          
#ggja7;a77#cg7 of such ,code7 which is  
established by the ,executive ,director 
and designated at the time of the       
establishment of the account as a       
,u,s,account ,,ira4  7ii7 ,distributions
 ,no amount may be distributed from a   
,u,s,account ,,ira to an account holder 
or other beneficiary earlier than the   
account holder attains the age of       
#eia_/b1 except--  7,i7 distributions   
which are made to a beneficiary 7or to  
the estate of the account holder7 upon  
death of the account holder1  7,,ii7    
distributions described in paragraph    
7#b71  7,,iii7 qualified first-time     
homebuyer distributions 7as defined in  
section #gb7t77#h7 of such ,code71      
7,,iv7 distributions for qualified      

medical expenses1  7,v7 any distribution
 which would not be includible in gross 
income if made from a qualified ,,able  
program 7as defined in section          
#ebi;,a7b7 of such ,code7 with respect  
to the account holder or a member of the
 family 7as defined in section          
#ebi;,a7e77#d77 of the account holder1  
7,,vi7 any distribution used to prevent 
foreclosure on the principal residence  
of the account holder1 and  7,,vii7 any 
distribution used to start a small      
business4  ,any distribution described  
in subclauses 7,i7 through 7,,vii7 shall
 not be included in gross income4  7iii7
 ,no rollovers from ,u,s,account ,,ira  
,no amounts may be rolled over from a   
,u,s,account ,,ira4  7f7 ,rights of     
legal guardian ,until the account holder
 of a ,u,s,account attains age #ah1 any 
rights or duties of the account holder  
under this ,act with respect to such    
account shall be exercised or performed 
by the legal guardian of such account   
holder4  7g7 ,private management  7#a7  

,in general ,the account holder of a    
,u,s,account may elect1 under           
regulations prescribed by the           
,secretary1 to transfer the ,u,s,account
 to a trustee who meets the requirements
 of paragraph 7#b74  7#b7 ,trustee      
requirements ,a trustee meets the       
requirements of this paragraph if the   
trustee-- 7,a7 is a bank 7as defined in 
section #djh7n77 or another person who  
demonstrates to the satisfaction of the 
,secretary that the manner in which that
 person will administer the ,u,s,account
 will be consistent with the            
requirements of this ,act or who has so 
demonstrated with respect to any        
,u,s,account1  7,b7 agrees to a         
reasonable cap on its fees and costs1 as
 determined by the ,treasury1 for the   
management of ,u,s,accounts1  7,c7      
provides an investment fund that        
maximizes growth over time while        
minimizing risk1 and  7,d7 provides the 
safeguards with respect to ,u,s,accounts
 required by the ,secretary4  7#c7      

,additional requirements ,for purposes  
of this subsection1 rules similar to the
 rules of paragraphs 7#c71 7#d71 and    
7#e7 of section #djh of the ,internal   
,revenue ,code of #aihf shall apply4    
7h7 ,adjustment for inflation  7#a7 ,in 
general ,for each calendar year         
beginning after #bjae1 the dollar       
amounts under sections #c7;e77#a71      
#d7;c77#c77;,c71 and #d7;d77#b7 shall   
each be increased by such dollar amount 
multiplied by the cost-of-living        
adjustment determined under section     
#a7;f77#c7 of the ,internal ,revenue    
,code of #aihf determined by            
substituting calendar year #bjad for    
calendar year #aiib in subparagraph 7,b7
 thereof4  7#b7 ,rounding ,if any amount
 adjusted under paragraph 7#a7 is not a 
multiple of #ej1 such amount shall be   
rounded to the next lowest multiple of  
#ej4  #e4 ,assignment1 alienation1 and  
treatment of deceased individuals  7a7  
,assignment and alienation ,under       
regulations which shall be prescribed by

 the ,executive ,director1 rules        
relating to assignment and alienation   
applicable under chapter #hd of title   
#e1 ,united ,states ,code1 with respect 
to amounts held in accounts in the      
,thrift ,savings ,fund shall apply with 
respect to amounts held in ,u,s,accounts
 in the ,u,s,account ,fund4  7b7        
,treatment of accounts of deceased      
individuals ,in the case of a deceased  
account holder of a ,u,s,account which  
has an account balance greater than     
zero1 upon receipt of notification of   
such individual's death1 the ,executive 
,director shall close the account and   
shall transfer the balance in such      
account to the duly appointed legal     
representative of the estate of the     
deceased account holder1 or if there is 
no such representative1 to the person or
 persons determined to be entitled      
thereto under the laws of the domicile  
of the deceased account holder4  #f4    
,rules governing ,u,s,accounts relating 
to investment1 accounting1 and reporting

  7a7 ,default investment program ,the  
,secretary shall establish1 and the     
,u,s,account ,fund ,board shall invest  
in1 a retirement savings bond that earns
 interest at the same annual percentage 
rate as securities issued to the        
,government ,securities ,investment     
,fund in the ,thrift ,savings ,plan for 
,federal employees as determined under  
section #hdch7;e77#b7 of title #e1      
,united ,states ,code1 and shall be     
compounded daily at #a_/bfj of the      
annual percentage rate4  7b7 ,other     
rules  7#a7 ,in general ,under          
regulations which shall be prescribed by
 the ,executive ,director1 and subject  
to the provisions of this ,act1 the     
following provisions shall apply with   
respect to the ,u,s,account ,fund and   
accounts maintained in such ,fund in the
 same manner and to the same extent as  
such provisions relate to the ,thrift   
,savings ,fund and the accounts         
maintained in the ,thrift ,savings      
,fund3  7,a7 ,section #hdch of title #e1

 ,united ,states ,code 7relating to     
investment of the ,thrift ,savings      
,fund74  7,b7 ,section #hdci7;b7 of such
 title 7relating to engagement of       
independent qualified public            
accountant74  7,c7 ,section #hdci7;c7 of
 such title 7relating to periodic       
statements and summary descriptions of  
investment options74  7,d7 ,section     
#hdci7;d7 of such title 7relating to    
assumption of risk74  7#b7 ,application 
rules ,for purposes of paragraph 7#a71  
references in such sections #hdch and   
#hdci to an employee1 ,member1 former   
employee1 or former ,member shall be    
deemed references to an account holder  
of a ,u,s,account in the ,u,s,account   
,fund4  7c7 ,confidentiality and        
disclosure  7#a7 ,in general ,except as 
otherwise authorized by ,federal law1   
the ,u,s,account ,fund ,board1 the      
,executive ,director1 and any employee  
of the ,u,s,account ,fund ,board shall  
not disclose information with respect to
 the ,u,s,account ,fund or any account  

maintained in such ,fund4  7#b7         
,disclosure to designee of beneficiary  
,the ,executive ,director may1 subject  
to such requirements and conditions as  
he may prescribe by regulations1        
disclose such information with respect  
to the ,u,s,account of the beneficiary  
to such person or persons as the        
beneficiary may designate in a request  
for or consent to such disclosure1 or to
 any other person at the beneficiary's  
request to the extent necessary to      
comply with a request for information or
 assistance made by the beneficiary to  
such other person4  #g4 ,u,s,account    
,fund ,board  7a7 ,in general ,there is 
established in the executive branch of  
the ,government a ,u,s,account ,fund    
,board4  7b7 ,composition1 duties1 and  
responsibilities ,subject to the        
provisions of this ,act1 the following  
provisions shall apply with respect to  
the ,u,s,account ,fund ,board in the    
same manner and to the same extent as   
such provisions relate to the ,federal  

,retirement ,thrift ,investment ,board3 
7#a7 ,section #hdgb of title #e1 ,united
 ,states ,code 7relating to composition 
of ,federal ,retirement ,thrift         
,investment ,board74  7#b7 ,section     
#hdgd of such title 7relating to        
,executive ,director74  7#c7 ,section   
#hdge of such title 7relating to        
investment policies74  7#d7 ,section    
#hdgf of such title 7relating to        
administrative provisions74  #h4        
,fiduciary responsibilities  7a7 ,in    
general ,under regulations of the       
,secretary of ,labor1 the provisions of 
sections #hdgg and #hdgh of title #e1   
,united ,states ,code1 shall apply in   
connection with the ,u,s,account ,fund  
and the accounts maintained in such     
,fund in the same manner and to the same
 extent as such provisions apply in     
connection with the ,thrift ,savings    
,fund and the accounts maintained in the
 ,thrift ,savings ,fund4  7b7           
,investigative authority ,any authority 
available to the ,secretary of ,labor   

under section #ejd of the ,employee     
,retirement ,income ,security ,act of   
#aigd 7#bi ,u4,s4,c4 #aacd7 is hereby   
made available to the ,secretary of     
,labor1 and any officer designated by   
the ,secretary of ,labor1 to determine  
whether any person has violated1 or is  
about to violate1 any provision         
applicable under subsection 7a74  7c7   
,exculpatory provisions2 insurance  7#a7
 ,in general ,any provision in an       
agreement or instrument which purports  
to relieve a fiduciary from             
responsibility or liability for any     
responsibility1 obligation1 or duty     
under this ,act shall be void4  7#b7    
,insurance ,amounts in the ,u,s,account 
,fund available for administrative      
expenses shall be available and may be  
used at the discretion of the ,executive
 ,director to purchase insurance to     
cover potential liability of persons who
 serve in a fiduciary capacity with     
respect to the ,fund and accounts       
maintained therein1 without regard to   

whether a policy of insurance permits   
recourse by the insurer against the     
fiduciary in the case of a breach of a  
fiduciary obligation4  #i4 ,accounts    
disregarded in determining eligibility  
for ,federal benefits ,amounts in any   
,u,s,account shall not be taken into    
account in determining any individual's 
or household's financial eligibility    
for1 or amount of1 any benefit or       
service1 paid for in whole or in part   
with ,federal funds1 including student  
financial aid4  #aj4 ,reports  7a7      
,reports to ,congress ,the ,executive   
,director1 in consultation with the     
,secretary1 shall annually transmit a   
written report to the ,congress4 ,such  
report shall include--  7#a7 a detailed 
description of the status and operation 
of the ,u,s,account ,fund and the       
management of the ,u,s,accounts1 and    
7#b7 a detailed accounting of the       
administrative expenses in carrying out 
this ,act1 including the ratio of such  
administrative expenses to the balance  

of the ,u,s,account ,fund and the       
methodology adopted by the ,executive   
,director for allocating such expenses  
among the ,u,s,accounts4  7b7 ,reports  
to account holders ,the ,u,s,account    
,fund ,board shall prescribe regulations
 under which each individual for whom a 
,u,s,account is maintained shall be     
furnished with an annual statement      
relating to the individual's account1   
which shall include--  7#a7 a statement 
of the balance of individual's          
,u,s,account1  7#b7 a projection of the 
account's growth by the time the        
individual attains the age of #ah1 and  
7#c7 such other information as the      
,secretary deems relevant4  #aa4 ,tax   
provisions  7a7 ,tax treatment of       
,u,s,accounts ,subchapter ,f of chapter 
#a of the ,internal ,revenue ,code of   
#aihf is amended by adding at the end   
the following new part3  ,,ix           
,u,s,account ,fund and ,u,s,accounts    
,sec4 #ecj;,a4 ,u,s,account ,fund and   
,u,s,accounts4  #ecj;,a4 ,u,s,account   

,fund and ,u,s,accounts  7a7 ,general   
,rule ,the ,u,s,account ,fund and       
,u,s,accounts shall be exempt from      
taxation under this subtitle4           
,notwithstanding the preceding sentence1
 a ,u,s,account shall be subject to the 
taxes imposed by section #eaa 7relating 
to imposition of tax on unrelated       
business income of charitable           
organizations74  7b7 ,definitions ,for  
purposes of this section1 the terms     
,u,s,account ,fund and ,u,s,account have
 the meanings given such terms by the   
,u,s,accounts3 ,investing in ,america's 
,future ,act of #bjae4  7c7 ,tax        
treatment of distributions ,any amount  
paid or distributed out of a            
,u,s,account--  7#a7 which meets the    
distribution rules of the ,u,s,accounts3
 ,investing in ,america's ,future ,act  
of #bjae shall not be includible in     
gross income1 and  7#b7 which does not  
meet the distribution rules of section  
#d7;e7 of such ,act shall be included in
 the gross income of the account holder4

  4  7b7 ,enforcement provisions        
relating to private management of       
,u,s,accounts  7#a7 ,excess             
contributions ,section #digc of the     
,internal ,revenue ,code of #aihf is    
amended-- 7,a7 by striking or at the end
 of subsection 7a77#d71 by inserting or 
at the end of subsection 7a77#e71 and by
 inserting after subsection 7a77#e7 the 
following new paragraph3  7#e7 a        
,u,s,account subject to management under
 section #d7;g7 of the ,u,s,accounts3   
,investing in ,america's ,future ,act of
 #bjae1  1 and  7,b7 by adding at the   
end the following new subsection3  7h7  
,excess contributions to privately      
managed ,u,s,accounts ,for purposes of  
this section1 in the case of a          
,u,s,account subject to management under
 section #d7;g7 of the ,u,s,accounts3   
,investing in ,america's ,future ,act of
 #bjae1 the term excess contributions   
means the sum of--  7#a7 the aggregate  
amount contributed for the taxable year 
to the account1 and  7#b7 the amount    

determined under this subsection for the
 preceding taxable year1 reduced by the 
sum of--  7,a7 the distributions out of 
the account1 and  7,b7 the excess 7if   
any7 of--  7i7 the maximum amount       
allowable as a contribution under       
section #d7;c77#c77;,c7 of the          
,u,s,accounts3 ,investing in ,america's 
,future ,act of #bjae for the taxable   
year1 over  7ii7 the amount contributed 
to the account for the taxable year4  4 
7#b7 ,prohibited transactions ,section  
#dige of the ,internal ,revenue ,code of
 #aihf is amended-- 7,a7 by adding at   
the end of subsection 7c7 the following 
new paragraph3  7#g7 ,special rule for  
,u,s,accounts ,an individual for whose  
benefit a ,u,s,account subject to       
management under section #d7;g7 of the  
,u,s,accounts3 ,investing in ,america's 
,future ,act of #bjae shall be exempt   
from the tax imposed by this section    
with respect to any transaction         
concerning such account 7which would    
otherwise be taxable under this section7

 if1 with respect to such transaction1  
the account ceases to be a ,u,s,account 
by reason of the application of section 
#ecj;,a7c77#b7 to such account4  1 and  
7,b7 in subsection 7e77#a7 by           
redesignating subparagraph 7,g7 as      
subparagraph 7,h7 and by inserting after
 subparagraph 7,f7 the following new    
subparagraph3  7,g7 a ,u,s,account      
subject to management under section     
#d7;g7 of the ,u,s,accounts3 ,investing 
in ,america's ,future ,act of #bjae1  4 
7c7 ,increase in child tax credit  7#a7 
,in general ,section #bd of the         
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following3  7g7 ,u,s,account            
contributions ,for purposes of this     
section-- 7#a7 ,in general ,the amount  
allowed as a credit under subsection 7a7
 shall be increased by the ,u,s,account 
contribution amount4  7#b7 ,u,s,account 
contribution amount ,the term           
,u,s,account contribution amount means  
with respect to each qualifying account 

holder the amount contributed by the    
taxpayer to the ,u,s,account of the     
taxpayer for the taxable year which is  
taken into account under section        
#d7;d77#b77;,b77,i7 of the              
,u,s,accounts3 ,investing in ,america's 
,future ,act of #bjae4  7#c7 ,limitation
 ,the amount under paragraph 7#b7 shall 
be reduced 7but not below zero7 under   
subsection 7b77#a7 in the same manner as
 the credit under subsection 7a7 is     
reduced under subsection 7b77#a74  7#d7 
,amount fully refundable ,the aggregate 
credits allowed to the taxpayer under   
subpart ,c shall be increased by the    
amount of the increase under this       
subsection and such amount--  7,a7 shall
 not be treated as a credit allowed     
under this subpart1 and  7,b7 shall     
reduce the amount of credit otherwise   
allowable under subsection 7a7 without  
regard to section #bf7;a74  4  7d7      
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    

#bjae4  #ab4 ,earned ,income ,tax       
,credit outreach ,section #cb of the    
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new subsection3  7n7 ,earned  
income tax credit outreach  7#a7 ,in    
general ,to the extent practicable and  
not otherwise precluded by section      
#feaa1 in the case of any taxpayer who1 
based on information available to the   
,secretary1 did not claim1 but may be   
allowed1 a credit under subsection 7a7  
for a preceding taxable year1 the       
,secretary shall annually provide to    
each such taxpayer notice that such     
taxpayer may be eligible to claim such  
credit4  7#b7 ,determination of credit  
and deposit ,not earlier than #fj days  
after providing notice under paragraph  
7#a7 to a taxpayer with respect to a    
taxable year1 if such taxpayer fails to 
claim the credit under this section for 
such taxable year1 the ,secretary shall 
determine the credit on behalf of the   
taxpayer4 ,any refund attributable to   

such credit shall be--  7,a7 deposited  
in the ,u,s,account of any dependents of
 the taxpayer 7pro rata in the case of  
more than one ,u,s,account71 or  7,b7 in
 the case of a taxpayer with dependents 
who do not have a ,u,s,account or a     
taxpayer with no dependents1 paid       
directly to the taxpayer4  ,for purposes
 of this paragraph1 the term            
,u,s,account shall have the meaning     
given such term by section #d of the    
,u,s,accounts3 ,investing in ,america's 
,future ,act of #bjae4 ,the ,secretary  
shall not collect any overpayment of the
 credit determined under this paragraph 
if such overpayment is attributable to  
an error of the ,secretary4  4