,,ii  #aaf? ,,congress  #b;d ,session   
,s4 #ddad  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,augu/ #d1 #bjbj,mr4   
,jones 7= himself1 ,mr4 ,g>dn]1 & ,mr4  
,br[n7 introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to e/abli%        
qualifi$ d[n paym5t sav+s programs4  #a4
 ,%ort title ,?is ,act may be cit$ z !  
,am]ican ,dream ,d[n ,paym5t ,act (     
#bjbj4  #b4 ,qualifi$ d[n paym5t sav+s  
programs  7a7 ,9 g5]al ,"p ,,viii (     
sub*apt] ,f ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #ebi;,a ! foll[+ new      
section3  #ebi;,b4 ,qualifi$ d[n paym5t 
sav+s programs  7a7 ,9 g5]al ,a qualifi$
 d[n paym5t sav+s program %all be exempt
 f taxation "u ?is subtitle4 ,not)/&+ ! 
prec$+ s5t5ce1 su* program %all be      
subject to ! taxes impos$ by section    
#eaa 7relat+ to imposition ( tax on     
unrelat$ bus9ess income ( *>itable      
organizations74  7b7 ,qualifi$ d[n      

paym5t sav+s program ,= purposes ( ?is  
section-- 7#a7 ,9 g5]al ,! t]m qualifi$ 
d[n paym5t sav+s program means a program
 e/abli%$ & ma9ta9$ by a ,/ate or ag5cy 
or in/rum5tality !re(-- 7,a7 "u :i* a   
p]son may make contributions to a       
qualifi$ d[n paym5t sav+s acc\nt :i* is 
e/abli%$ = ! purpose ( meet+ qualifi$   
d[n paym5t exp5ses ( ! designat$        
b5efici>y ( ! acc\nt1 &  7,b7 :i* meets 
! o!r requirem5ts ( ?is subsection4     
7#b7 ,ca% contributions  7,a7 ,9 g5]al  
,a program %all n be treat$ z a qualifi$
 d[n paym5t sav+s program unless x      
provides t no contribution w be         
accept$-- 7i7 unless x is 9 ca%1 &  7ii7
 except 9 ! case ( contributions "u     
subsection 7c77#c77;,c71 if su*         
contribution to a qualifi$ d[n paym5t   
sav+s acc\nt w\ld result 9 ! balance (  
su* acc\nt exce$+ #ajb1jhj4  7,b7       
,inflation adju/m5t  7i7 ,9 g5]al ,9 !  
case ( any cal5d> ye> beg9n+ aft] #bjbj1
 ! #ajb1jhj am\nt 9 subp>agraph 7,a77ii7
 %all be increas$ by an am\nt equal to--

 7,i7 su* doll> am\nt1 multipli$ by     
7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u 
clause 7ii74  7ii7 ,co/-(-liv+ adju/m5t 
,= purposes ( clause 7i71 ! co/-(-liv+  
adju/m5t = any cal5d> ye> is ! p]c5tage 
7if any7 by :i*-- 7,i7 ! ,,cpi = !      
prec$+ cal5d> ye>1 exce$s  7,,ii7 !     
,,cpi = cal5d> ye> #bjai4  ,= purposes (
 ?is clause1 ! ,,cpi = any cal5d> ye>   
%all be det]m9$ 9 ! same mann] z x is   
det]m9$ "u section #a7;f77#d74  7iii7   
,r\nd+ ,if any increase det]m9$ "u      
clause 7i7 is n a multiple ( #aj1 su*   
increase %all be r\nd$ to ! ne>e/       
multiple ( #aj4  7#c7 ,sep>ate acc\nt+  
,a program %all n be treat$ z a qualifi$
 d[n paym5t sav+s program unless x      
provides sep>ate acc\nt+ = ea* designat$
 b5efici>y4  7#d7 ,inve/m5t direction ,a
 program %all n be treat$ z a qualifi$  
d[n paym5t sav+s program unless x       
provides t-- 7,a7 except z provid$ 9    
subp>agraph 7,b71 any contributor to1 or
 designat$ b5efici>y "u1 su* program    
may1 directly or indirectly1 direct !   

inve/m5t ( any contributions to !       
program 7or any e>n+s !reon7 no m ?an #b
 times 9 any cal5d> ye> & subject to !  
regulations e/abli%$ pursuant to ?is    
section1 &  7,b7 9 ! ev5t t an acc\nt's 
hold+s meet ! value e/abli%$ "u p>agraph
 7#b77;,b71 ! acc\nt funds w be         
transf]r$ to inve/m5ts 9 ,unit$ ,/ates  
,treasury securities4  7#e7 ,no pl$g+ ( 
int]e/ z a security ,a program %all n be
 treat$ z a qualifi$ d[n paym5t sav+s   
program if x all[s any int]e/ 9 !       
program or any portion !re( to be us$ z 
security = a loan4  7#f7 ,compliance )  
regulations ,a program %all n be treat$ 
z a qualifi$ d[n paym5t sav+s program   
unless x complies ) all regulations     
issu$ pursuant to subsection 7f74  7c7  
,tax treatm5t ( designat$ b5efici>ies & 
contributors  7#a7 ,9 g5]al ,except z   
o!rwise provid$ 9 ?is subsection1 no    
am\nt %all be includible 9 gross income 
(-- 7,a7 a designat$ b5efici>y "u a     
qualifi$ d[n paym5t sav+s program1 or   
7,b7 a contributor to su* program on    

behalf ( a designat$ b5efici>y1  )      
respect to any di/ribution or e>n+s "u  
su* program4  7#b7 ,gift tax treatm5t ( 
contributions ,= purposes ( *apt]s #ab &
 #ac-- 7,a7 ,9 g5]al ,any contribution  
to a qualifi$ d[n paym5t sav+s program  
on behalf ( any designat$ b5efici>y %all
 be treat$ z a complet$ gift to su*     
b5efici>y :i* is n a future int]e/ 9    
prop]ty4  7,b7 ,treatm5t ( excess       
contributions ,if ! aggregate am\nt (   
contributions describ$ 9 subp>agraph    
7,a7 dur+ ! cal5d> ye> by a donor exce$s
 ! limitation = su* ye> "u section      
#bejc7;b71 su* aggregate am\nt %all1 at 
! election ( ! donor1 be tak5 into      
acc\nt = purposes ( su* section ratably 
ov] ! #e-ye> p]iod beg9n+ ) su* cal5d>  
ye>4  7#c7 ,di/ributions  7,a7 ,9 g5]al 
,any di/ribution "u a qualifi$ d[n      
paym5t sav+s program %all be includible 
9 ! gross income ( ! di/ributee 9 !     
mann] z provid$ "u section #gb to !     
ext5t n exclud$ f gross income "u any   
o!r provision ( ?is *apt]4  7,b7        

,di/ributions = qualifi$ d[n paym5t     
exp5ses ,= purposes ( ?is p>agraph1 if  
di/ributions f a qualifi$ d[n paym5t    
sav+s program-- 7i7 d n exce$ ! qualifi$
 d[n paym5t exp5ses1 no am\nt %all be   
includible 9 gross income1 &  7ii7 9 any
 o!r case1 ! am\nt o!rwise includible 9 
gross income %all be r$uc$ by an am\nt  
:i* be>s ! same ratio to su* am\nt z su*
 exp5ses be> to su* di/ributions4  7,c7 
,rollov]s  7i7 ,9 g5]al ,subp>agraph    
7,a7 %all n apply to t portion ( any    
di/ribution :i*1 )9 #fj days ( su*      
di/ribution1 is transf]r$ to ano!r      
qualifi$ d[n paym5t sav+s acc\nt = !    
b5efit ( ! designat$ b5efici>y4  7ii7   
,limitation on c]ta9 rollov]s ,clause   
7i7 %all n apply to any transf] if su*  
transf] occurs )9 #ab mon?s f ! date ( a
 previ\s transf] to any qualifi$ d[n    
paym5t sav+s acc\nt = ! b5efit ( !      
designat$ b5efici>y4  7#d7 ,e/ate tax   
treatm5t  7,a7 ,9 g5]al ,no am\nt %all  
be includible 9 ! gross e/ate ( any     
individual = purposes ( *apt] #aa by    

reason ( an int]e/ 9 a qualifi$ d[n     
paym5t sav+s program4  7,b7 ,am\nts     
includible 9 e/ate ( designat$ b5efici>y
 9 c]ta9 cases ,subp>agraph 7,a7 %all n 
apply to am\nts di/ribut$ on acc\nt ( ! 
dea? ( a b5efici>y4  7,c7 ,am\nts       
includible 9 e/ate ( donor mak+ excess  
contributions ,9 ! case ( a donor :o    
makes ! election describ$ 9 p>agraph    
7#b77;,b7 & :o dies be=e ! close ( !    
#e-ye> p]iod ref]r$ to 9 su* p>agraph1  
not)/&+ subp>agraph 7,a71 ! gross e/ate 
( ! donor %all include ! portion ( su*  
contributions prop]ly allocable to      
p]iods aft] ! date ( dea? ( ! donor4    
7#e7 ,o!r gift tax rules ,= purposes (  
*apt]s #ab & #ac1 9 no ev5t %all a      
di/ribution f a qualifi$ d[n paym5t     
sav+s acc\nt be treat$ z a taxable gift4
  7#f7 ,additional tax  7,a7 ,9 g5]al ,!
 tax impos$ by ?is *apt] = any taxable  
ye> on any taxpay] :o receives a        
di/ribution f a qualifi$ d[n paym5t     
sav+s program :i* is includible 9 gross 
income %all be increas$ by #aj p]c5t ( !

 am\nt :i* is s includible4  7,b7       
,exceptions ,subp>agraph 7,a7 %all n    
apply if ! paym5t or di/ribution is--   
7i7 made to a b5efici>y 7or to ! e/ate (
 ! designat$ b5efici>y7 on or aft] !    
dea? ( ! designat$ b5efici>y1 or  7ii7  
attributable to ! designat$ b5efici>y's 
be+ disabl$ 7)9 ! mean+ ( section       
#gb7m77#g774  7,c7 ,contributions       
return$ be=e c]ta9 date ,subp>agraph    
7,a7 %all n apply to ! di/ribution ( any
 contribution made dur+ a taxable ye> on
 behalf ( ! designat$ b5efici>y if-- 7i7
 su* di/ribution is receiv$ on or be=e !
 day prescrib$ by law 7includ+ ext5sions
 ( "t7 = fil+ su* designat$ b5efici>y's 
return = su* taxable ye>1 &  7ii7 su*   
di/ribution is accompani$ by ! am\nt (  
net income attributable to su* excess   
contribution4  7d7 ,reports ,ea* (fic]  
or employee hav+ control ( ! qualifi$   
d[n paym5t sav+s program or _! designee 
%all make su* reports reg>d+ su* program
 to ! ,secret>y & to designat$          
b5efici>ies ) respect to contributions1 

di/ributions1 & su* o!r matt]s z !      
,secret>y may require4 ,! reports       
requir$ by ?is subsection %all be fil$  
at su* "t & 9 su* mann] & furni%$ to su*
 individuals at su* "t & 9 su* mann] z  
may be requir$ by ! ,secret>y4  7e7 ,o!r
 def9itions & special rules ,= purposes 
( ?is section-- 7#a7 ,designat$         
b5efici>y ,! t]m designat$ b5efici>y    
means ! individual designat$ at !       
comm5cem5t ( p>ticipation 9 ! qualifi$  
d[n paym5t sav+s program z ! b5efici>y (
 am\nts paid 7or to be paid7 to !       
program4  7#b7 ,qualifi$ d[n paym5t     
exp5ses ,! t]m qualifi$ d[n paym5t      
exp5ses means am\nts 7includ+ clos+     
co/s7 paid or incurr$ to pur*ase a      
pr9cipal resid5ce 7)9 ! mean+ ( section 
#aba74  7#c7 ,qualifi$ d[n paym5t sav+s 
acc\nt ,! t]m qualifi$ d[n paym5t sav+s 
acc\nt means an acc\nt ma9ta9$ "u a     
qualifi$ d[n paym5t sav+s program4  7f7 
,regulations ,not)/&+ any o!r provision 
( ?is section1 ! ,secret>y1 9           
consultation ) ! ,*airman ( !           

,securities & ,ex*ange ,commission1 %all
 prescribe su* regulations z may be     
necess>y or appropriate to c>ry out !   
purposes ( ?is section & to prev5t abuse
 ( su* purposes4 ,su* regulations %all  
include-- 7#a7 imp]missible inve/m5ts = 
qualifi$ d[n paym5t sav+s programs2     
7#b7 p]missible fees1 includ+ ! maximum 
am\nt ( ov]all fees & commissions1 t may
 be *>g$ 9 association ) a qualifi$ d[n 
paym5t sav+s program acc\nt2 &  7#c7    
m9imum requir$ disclosures to acc\nt    
b5efici>ies1 includ+ disclosures relat$ 
to any possible losses t c\ld be incurr$
 9 a qualifi$ d[n paym5t sav+s acc\nt4  
4  7b7 ,tax on excess contributions     
7#a7 ,9 g5]al ,subsection 7a7 ( section 
#digc ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ by /rik+ or at ! end (        
p>agraph 7#e71 by ins]t+ or at ! end (  
p>agraph 7#f71 & by ins]t+ aft] p>agraph
 7#f7 ! foll[+ new p>agraph3  7#g7 a    
qualifi$ d[n paym5t sav+s acc\nt 7)9 !  
mean+ ( section #ebi;,b71  4  7#b7      
,excess contribution ,section #digc (   

su* ,code is am5d$ by add+ at ! end !   
foll[+ new subsection3  7i7 ,excess     
contributions to qualifi$ d[n paym5t    
sav+s acc\nts ,= purposes ( ?is         
section-- 7#a7 ,9 g5]al ,9 ! case ( a   
qualifi$ d[n paym5t sav+s acc\nt 7)9 !  
mean+ ( section #ebi;,b71 ! t]m excess  
contributions means ! am\nt by :i* !    
am\nt contribut$ = ! taxable ye> to su* 
acc\nt 7o!r ?an contributions "u section
 #ebi;,b7c77#c77;,c77 exce$s !          
contribution limit "u section           
#ebi;,b7b77#b77;,b74  7#b7 ,special rule
 ,= purposes ( ?is subsection1 any      
contribution :i* is di/ribut$ out ( !   
qualifi$ d[n paym5t sav+s acc\nt 9 a    
di/ribution to :i* section              
#ebi;,b7c77#f77;,c7 applies %all be     
treat$ z an am\nt n contribut$4  4  7c7 
,p5alty = failure ,to file reports      
,section #ffic7;a77#b7 is am5d$ by /rik+
 & at ! end ( subp>agraph 7,e71 by      
r$esignat+ subp>agraph 7,f7 z           
subp>agraph 7,g71 & by ins]t+ aft]      
subp>agraph 7,e7 ! foll[+3  7,f7 section

 #ebi;,b7d7 7relat+ to qualifi$ d[n     
paym5t sav+s programs71 &  4  7d7 ,o!r  
con=m+ am5dm5ts  7#a7 ,section          
#bf7;b77#b7 ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by /rik+ & at ! end (   
subp>agraph 7,x71 by /rik+ ! p]iod at ! 
end ( subp>agraph 7,y7 & ins]t+ 1 &1 &  
by ins]t+ aft] subp>agraph 7,y7 !       
foll[+3  7,z7 section #ebi;,b7c77#f7    
7relat+ to additional tax on qualifi$   
d[n paym5t sav+s program di/ributions n 
us$ = qualifi$ d[n paym5t exp5ses74  4  
7#b7 ,section #hgg;,a ( su* ,code is    
am5d$-- 7,a7 9 subsection 7e77#b7 by    
ins]t+ a qualifi$ d[n paym5t sav+s      
program 7z def9$ 9 section #ebi;,b71    
aft] a qualifi$ ,,able program 7z def9$ 
9 section #ebi;,a711 &  7,b7 9          
subsection 7g77#f7 by ins]t+            
#ebi;,b7c77#f71 aft] #ebi;,a7c77#c714   
7#c7 ,section #dife7;c7 ( su* ,code is  
am5d$ by /rik+ or at ! end ( p>agraph   
7#g71 by /rik+ ! p]iod at ! end (       
p>agraph 7#h7 & ins]t+ 1 or1 & by ins]t+
 aft] p>agraph 7#h7 ! foll[+ new        

p>agraph3  7#i7 a program describ$ 9    
section #ebi;,b4  4  7#d7 ,! table (    
sections = "p ,,viii ( sub*apt] ,f (    
*apt] #a ( su* ,code is am5d$ by ins]t+ 
aft] ! item relat+ to section #ebi;,a ! 
foll[+ new item3  ,sec4 #ebi;,b4        
,qualifi$ d[n paym5t sav+s programs4  4 
7e7 ,reports on d[n paym5t sav+s        
programs ,beg9n+ on t date t is #ab     
mon?s aft] ! regulations e/abli%$       
pursuant to section #ebi;,b7f7 are      
f9aliz$1 & e two ye>s !reaft]1 !        
,secret>y ( ! ,treasury 7or !           
,secret>y's delegate71 9 coord9ation ) !
 ,*airman ( ! ,securities & ,ex*ange    
,commission & ! ,/ates (f]+ qualifi$ d[n
 paym5t sav+s programs1 %all issue a    
public report detail+ ! foll[+3 7#a7 ,! 
numb] ( ,/ates t h e/abli%$ qualifi$ d[n
 paym5t sav+s programs4  7#b7 ,! numb] (
 d[n paym5t sav+s program acc\nts 9     
exi/5ce dur+ ! "t specifi$ 9 ! report & 
! numb] ( su* acc\nts t h be5 e/abli%$  
ov] ! life ( ! program4  7#c7 ,! age    
di/ribution ( d[n paym5t sav+s acc\nt   

b5efici>ies4  7#d7 ,! p]c5tage (        
qualifi$ d[n paym5t sav+s acc\nt        
b5efici>ies t w\ld be fir/-"t homebuy]s4
  7#e7 ,a summ>y ( ! acc\nt balances    
held 9 qualifi$ d[n paym5t sav+s program
 acc\nts4  7#f7 ,! race & g5d]          
di/ribution ( qualifi$ d[n paym5t sav+s 
program acc\nt designat$ b5efici>ies4   
7#g7 ,! income di/ribution ( ! designat$
 b5efici>ies ( qualifi$ d[n paym5t sav+s
 program acc\nts4  7#h7 ,! numb] ( d[n  
paym5t sav+s program di/ributions t h   
be5 made s9ce ! previ\s report4  7#i7   
,su* o!r in=mation z ! ,secret>y 7or !  
,secret>y's designee7 %all det]m9e is   
requir$ to assess :e!r qualifi$ d[n     
paym5t sav+s acc\nts h contribut$ to    
facilitat+ access to af=dable           
home[n]%ip1 includ+ fir/-"t home[n]%ip1 
p>ticul>ly among "y p1 l[- &            
mod]ate-income p1 & p f communities )   
hi/orically l[ rates ( home[n]%ip4  7f7 
,effective date  7#a7 ,9 g5]al ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    

#ca1 #bjai4  7#b7 ,regulations ,!       
,secret>y ( ! ,treasury 7or !           
,secret>y's designee7 %all promulgate ! 
regulations or o!r guidance requir$ "u  
section #ebi;,b7f7 ( ! ,int]nal ,rev5ue 
,code ( #aihf1 z add$ by subsection 7a71
 n lat] ?an #f mon?s aft] ! date ( !    
enactm5t ( ?is ,act4