,,ii  #aae? ,,congress  #a/ ,session    
,s4 #agij  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #ab1         
#bjag,mr4 ,burr 7= himself1 ,mr4 ,casey1
 & ,ms4 ,murk[ski7 introduc$ ! foll[+   
bill2 :i* 0 read twice & ref]r$ to !    
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 improve college sav+s "u section #ebi  
programs1 & = o!r purposes4  #a4 ,%ort  
title ,?is ,act may be cit$ z ! ,boo/   
,sav+ = ,college ,act4  #b4 ,cr$it =    
contributions to #ebi plans  7a7 ,9     
g5]al ,subsection 7d7 ( section #be;,b (
 ! ,int]nal ,rev5ue ,code ( #aihf       
7relat+ to elective def]rals & ,,ira    
contributions by c]ta9 individuals7 is  
am5d$ by r$esignat+ p>agraph 7#b7 z     
p>agraph 7#c7 & by ins]t+ aft] p>agraph 
7#a7 ! foll[+ new p>agraph3  7#b7       
,contributions to qualifi$ tuition      
programs  7,a7 ,9 g5]al ,! t]m qualifi$ 
sav+s contribution includes ! am\nt (   
any pur*ase or contribution describ$ 9  
p>agraph 7#a77;,a7 ( section #ebi7;b7 to

 a qualifi$ tuition program 7z def9$ 9  
su* section7 if--  7i7 ! taxpay] has !  
p[] to au?orize di/ributions & o!rwise  
adm9i/] ! acc\nt1 &  7ii7 ! designat$   
b5efici>y ( su* pur*ase or contribution 
is ! taxpay]1 ! taxpay]'s sp\se1 or an  
individual ) respect to :om ! taxpay] is
 all[$ a d$uction "u section #aea4  7,b7
 ,limitation bas$ on comp5sation ,!     
am\nt treat$ z a qualifi$ sav+s         
contribution by reason ( subp>agraph    
7,a7 = any taxable ye> %all n exce$ !   
sum (--  7i7 ! comp5sation 7z def9$ 9   
section #bai7;f77#a77 includible 9 !    
taxpay]'s gross income = ! taxable ye>1 
&  7ii7 ! am\nt exclud$ f ! taxpay]'s   
gross income "u section #aab 7relat+ to 
combat pay7 = su* ye>4  7,c7            
,det]m9ation ( adju/$ gross income      
,solely = purposes ( det]m9+ !          
applicable p]c5tage "u subsection 7b7   
:i* applies ) respect to ! am\nt treat$ 
z a qualifi$ sav+s contribution by      
reason ( subp>agraph 7,a71 adju/$ gross 
income 7det]m9$ )\t reg>d to ?is        

subp>agraph7 %all be increas$ by !      
excess 7if any7 (--  7i7 ! social       
security b5efits receiv$ dur+ ! taxable 
ye> 7)9 ! mean+ ( section #hf71 ov]     
7ii7 ! am\nt includ$ 9 gross income =   
su* ye> "u section #hf4  4  7b7 ,con=m+ 
am5dm5ts  7#a7 ,section #be;,b ( su*    
,code is am5d$ by /rik+ qualifi$        
retirem5t sav+s ea* place x appe>s 9 !  
text & ins]t+ qualifi$ sav+s4  7#b7 ,!  
subsection head+ = section #be;,b7d7 (  
su* ,code is am5d$ by /rik+ retirem5t4  
7#c7 ,subp>agraph 7,a7 ( section        
#be;,b7d77#c7 ( su* ,code1 z r$esignat$ 
by subsection 7a71 is am5d$--  7,a7 by  
/rik+ p>agraph 7#a7 ! fir/ place x      
appe>s & ins]t+ p>agraph 7#a7 or 7#b71 &
  7,b7 by /rik+ p>agraph 7#a7 ! second  
place x appe>s & ins]t+ p>agraph 7#a71  
or 7#b71 z ! case may be14  7#d7 ,!     
head+ = section #be;,b ( su* ,code is   
am5d$ by /rik+ & ,,ira contributions &  
ins]t+ 1 ,,ira contributions1 & qualifi$
 tuition program contributions4  7#e7 ,!
 table ( sections = subp>t ,a ( "p ,,iv 

( sub*apt] ,a ( *apt] #a ( su* ,code is 
am5d$ by /rik+ ! item relat+ to section 
#be;,b & ins]t+ ! foll[+ new item3 ,sec4
 #be;,b4 ,elective def]rals1 ,,ira      
contributions1 & qualifi$ tuition       
program contributions by c]ta9          
individuals44  7c7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to contributions made aft] ,decemb] #ca1
 #bjag1 9 taxable ye>s end+ aft] su*    
date4  #c4 ,exclusion f gross income =  
employ] contributions to qualifi$       
tuition programs  7a7 ,9 g5]al ,"p ,,iii
 ( sub*apt] ,b ( *apt] #a ( ! ,int]nal  
,rev5ue ,code ( #aihf 7relat+ to items  
specifically exclud$ f gross income7 is 
am5d$ by ins]t+ aft] section #abg !     
foll[+ new section3  #abg;,a4 ,employ]  
contributions to qualifi$ tuition       
programs  7a7 ,9 g5]al ,gross income (  
an employee does n include am\nts paid  
by ! employ] z contributions to a       
qualifi$ tuition program held by !      
employee or sp\se ( ! employee if !     
contributions are made pursuant to a    

program :i* is describ$ 9 subsection    
7c74  7b7 ,maximum exclusion  7#a7 ,9   
g5]al ,! am\nt exclud$ f ! gross income 
( an employee "u ?is section = ! taxable
 ye> %all n exce$ #a1jjj4  7#b7         
,inflation adju/m5t  7,a7 ,9 g5]al ,9 ! 
case ( any taxable ye> beg9n+ 9 a cal5d>
 ye> aft] #bjah1 ! #a1jjj am\nt conta9$ 
9 p>agraph 7#a7 %all be increas$ by an  
am\nt equal to--  7i7 su* doll> am\nt1  
multipli$ by  7ii7 ! 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> #bjag = 
cal5d> ye> #aiib 9 subp>agraph 7,b7     
!re(4  7,b7 ,r\nd+ ,any increase det]m9$
 "u subp>agraph 7,a7 %all be r\nd$ to ! 
ne>e/ multiple ( #ej4  7c7 ,qualifi$    
tuition assi/ance program ,= purposes ( 
?is section1 a qualifi$ tuition         
assi/ance program is a sep>ate writt5   
plan ( an employ] = ! b5efit ( su*      
employ]'s employees--  7#a7 "u :i* !    
employ] makes mat*+ contributions to    
qualifi$ tuition programs (--  7,a7 su* 

employees1  7,b7 _! sp\ses1 or  7,c7 any
 individual ) respect to :om su* an     
employee or sp\se--  7i7 is all[$ a     
d$uction "u section #aea1 &  7ii7 has ! 
p[] to au?orize di/ributions & o!rwise  
adm9i/] su* individual's acc\nt "u !    
qualifi$ tuition program1 &  7#b7 :i*   
meets requirem5ts simil> to !           
requirem5ts ( p>agraphs 7#b71 7#c71     
7#d71 7#e71 & 7#f7 ( section #abg7;b74  
7d7 ,def9itions & special rules ,=      
purposes ( ?is section-- 7#a7 ,qualifi$ 
tuition program ,! t]m qualifi$ tuition 
program means a qualifi$ tuition program
 z def9$ 9 section #ebi7;b74  7#b7      
,employee & employ] ,! t]ms employee &  
employ] %all h ! mean+ giv5 su* t]ms by 
p>agraphs 7#b7 & 7#c71 respectively1 (  
section #abg7;c74  7#c7 ,applicable     
rules ,rules simil> to ! rules (        
p>agraphs 7#d71 7#e71 7#f71 & 7#g7 (    
section #abg7;c7 %all apply4  7e7 ,cross
 ref]5ce ,= report+ & recordkeep+       
requirem5ts1 see section #fjci;,d4  4   
7b7 ,exclusion f employm5t taxes  7#a7  

,sections #caba7;a77#ah71               
#ccjf7;b77#ac71 & #cdja7;a77#ah7 ( su*  
,code are ea* am5d$ by ins]t+ #abg;,a1  
aft] #abg1 ea* place x appe>s4  7#b7    
,section #cbca7;e77#f7 ( su* ,code is   
am5d$ by /rik+ section #abg & ins]t+    
section #abg or #abg;,a4  7c7 ,report+ &
 recordkeep+ requirem5ts ,section       
#fjci;,d7d77#a7 ( su* ,code is am5d$ by 
ins]t+ #abg;,a1 aft] #abg14  7d7 ,o!r   
con=m+ am5dm5ts  7#a7 ,sections         
#abe7;f71 #dad7n77#c77;,c71 &           
#dad7t77#b7 ( su* ,code are ea* am5d$ by
 ins]t+ #abg;,a1 aft] #abg1 ea* place x 
appe>s4  7#b7 ,section #acb7;j77#h7 (   
su* ,code is am5d$ by /rik+ section #abg
 & ins]t+ section #abg or #abg;,a4  7#c7
 ,section #bba7;d77#b77;,a7 ( su* ,code 
is am5d$ by ins]t+ #abg;,a1 aft] #abg4  
7#d7 ,section #acig7;a77#b77;,a7 ( su*  
,code is am5d$ by ins]t+ at ! end !     
foll[+ new clause3  7iii7 ,any am\nt    
paid or incurr$ by an employ] :i* is    
excludable f ! gross income ( an        
employee "u section #abg;,a1 b only to !

 ext5t paid or incurr$ to a p]son n     
relat$ to ! employ]4  4  7#e7 ,section  
#bji7;a77#ae7 ( ! ,social ,security ,act
 7#db ,u4,s4,c4 #dji7;a77#ae77 is am5d$ 
by /rik+ or #abi & ins]t+ 1 #abg;,a1 or 
#abi4  7e7 ,cl]ical am5dm5t ,! table (  
sections = "p ,,iii ( sub*apt] ,b (     
*apt] #a ( su* ,code is am5d$ by ins]t+ 
aft] ! item relat+ to section #abg !    
foll[+ new item3 ,sec4 #abg;,a4 ,employ]
 contributions to qualifi$ tuition      
programs44  7f7 ,effective date ,!      
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjag4  #d4 ,special rollov] to    
,ro? ,,ira f long-t]m qualifi$ tuition  
program  7a7 ,9 g5]al ,p>agraph 7#c7 (  
section #ebi7;c7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new subp>agraph3  7,e7 ,special
 rollov] to ,ro? ,,ira f long-t]m       
qualifi$ tuition program ,= purposes (  
?is section-- 7i7 ,9 g5]al ,9 ! case ( a
 di/ribution f a qualifi$ tuition       
program :i* has be5 ma9ta9$ by an acc\nt

 own] = ! #aj-ye> p]iod end+ on ! date (
 su* di/ribution--  7,i7 subp>agraph    
7,a7 %all n apply to any portion ( su*  
di/ribution :i*1 n lat] ?an #fj days    
aft] su* di/ribution1 is paid into a    
,ro? ,,ira ma9ta9$ = ! b5efit ( su*     
acc\nt own] or ! designat$ b5efici>y "u 
su* qualifi$ tuition program1 &  7,,ii7 
su* portion %all be treat$ z a rollov]  
contribution = purposes ( section       
#djh;,a7e74  7ii7 ,limitation ,clause   
7i7 %all only apply to s mu* ( any      
di/ribution z does n exce$ ! less] (--  
7,i7 ! am\nt applicable to ! acc\nt own]
 "u section #djh;,a7c77#b7 = ! taxable  
ye>1 or  7,,ii7 ! aggregate am\nt       
contribut$ to ! program 7& e>n+s        
attributable !reto7 be=e ! #e-ye> p]iod 
end+ on ! date ( ! di/ribution4  4  7b7 
,qualifi$ rollov] contribution ,p>agraph
 7#a7 ( section #djh;,a7e7 ( su* ,code  
is am5d$ by /rik+ ! p]iod at ! end (    
subp>agraph 7,b7 & ins]t+ 1 & & by      
ins]t+ aft] subp>agraph 7,b7 ! foll[+   
new subp>agraph3  7,c7 f a qualifi$     

tuition program to ! ext5t provid$ 9    
section #ebi7;c77#c77;,e74  4  7c7      
,effective date ,! am5dm5ts made by ?is 
section %all apply ) respect to         
di/ributions aft] ,decemb] #ca1 #bjag4  
#e4 ,rollov]s to ,,able programs f #ebi 
programs  7a7 ,9 g5]al ,clause 7i7 (    
section #ebi7;c77#c77;,c7 ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
or at ! end ( subclause 7,i71 by /rik+ !
 p]iod at ! end ( subclause 7,,ii7 &    
ins]t+ 1 or1 & by add+ at ! end !       
foll[+3  7,,iii7 to an ,,able acc\nt 7z 
def9$ 9 section #ebi;,a7e77#f77 ( !     
designat$ b5efici>y4  ,subclause 7,,iii7
 %all n apply to s mu* ( a di/ribution  
:i*1 :5 add$ to all o!r contributions   
made to ! ,,able acc\nt = ! taxable ye>1
 exce$s ! limitation "u section         
#ebi;,a7b77#b77;,b74 4  7b7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to di/ributions aft] ! date (
 ! enactm5t ( ?is ,act4