,i  #aah? ,,congress  #b;d ,session  ,h4
 ,r4 #ijaj  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #aa1 #bjbd,mrs4 
,h>%b>g] 7= h]self1 ,mr4 ,gro?man1 ,mr4 
,ogles1 ,mr4 ,pflug]1 & ,mr4 ,van ,ord57
 introduc$ ! foll[+ bill2 :i* 0 ref]r$  
to ! ,committee on ,ways & ,means  ,a   
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to e/abli% univ]sal sav+s 
acc\nts4  #a4 ,%ort title ,?is ,act may 
be cit$ z ! ,univ]sal ,sav+s ,acc\nt    
,act ( #bjbd4  #b4 ,univ]sal sav+s      
acc\nts  7a7 ,9 g5]al ,sub*apt] ,f (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new "p3  ,,ix ,univ]sal ,sav+s ,acc\nts
  ,sec4 #ecj,u4 ,univ]sal sav+s acc\nts4
  #ecj,u4 ,univ]sal sav+s acc\nts  7a7  
,g5]al rule ,a univ]sal sav+s acc\nt    
%all be exempt f taxation "u ?is        
subtitle4 ,not)/&+ ! prec$+ s5t5ce1 su* 
acc\nt %all be subject to ! taxes impos$
 by section #eaa 7relat+ to imposition (
 tax on unrelat$ bus9ess income (       
*>itable organizations74  7b7 ,univ]sal 

sav+s acc\nt ,= purposes ( ?is section1 
! t]m univ]sal sav+s acc\nt means a tru/
 creat$ or organiz$ 9 ! ,unit$ ,/ates by
 an individual = ! exclusive b5efit (   
su* individual & :i* is designat$ 79 su*
 mann] z ! ,secret>y may prescribe7 at !
 "t ( ! e/abli%m5t ( ! tru/ z a univ]sal
 sav+s acc\nt1 b only if ! writt5 gov]n+
 in/rum5t creat+ ! tru/ meets ! foll[+  
requirem5ts3 7#a7 ,except 9 ! case ( a  
qualifi$ rollov] contribution describ$ 9
 subsection 7d7-- 7,a7 no contribution w
 be accept$ unless x is 9 ca%1 &  7,b7  
contributions w n be accept$ = ! taxable
 ye> 9 excess ( ! contribution limit    
specifi$ 9 subsection 7c77#b74  7#b7 ,no
 di/ribution w be made unless x is--    
7,a7 ca%1 or  7,b7 prop]ty t-- 7i7 has a
 readily asc]ta9able fair m>ket value1 &
  7ii7 is id5tifi$ by ! ,secret>y 9     
regulations or o!r guidance z prop]ty to
 :i* ?is subp>agraph applies4  7#c7 ,!  
tru/ee is a bank 7z def9$ 9 section     
#djh7n77 or ano!r p]son :o demon/rates  
to ! satisfaction ( ! ,secret>y t !     

mann] 9 :i* t p]son w adm9i/] ! tru/ w  
be consi/5t ) ! requirem5ts ( ?is       
section4  7#d7 ,no "p ( ! tru/ assets w 
be inve/$ 9 life insurance contracts or 
collectibles 7z def9$ 9 section         
#djh7m774  7#e7 ,! int]e/ ( an          
individual 9 ! balance ( 8 acc\nt is    
non=feitable4  7#f7 ,! assets ( ! tru/  
%all n be comm+l$ ) o!r prop]ty except 9
 a common tru/ fund or common inve/m5t  
fund4  7c7 ,treatm5t ( di/ributions &   
contributions  7#a7 ,di/ributions  7,a7 
,9 g5]al ,except z provid$ 9 subp>agraph
 7,b71 any di/ribution f a univ]sal     
sav+s acc\nt %all n be includible 9     
gross income4  7,b7 ,net income         
attributable to excess contributions    
,any di/ribution ( net income describ$ 9
 section #digc7;i77#b7 %all be          
includible 9 ! gross income ( ! acc\nt  
hold] 9 ! taxable ye> 9 :i* !           
contribution to :i* su* net income      
relates 0 made4  7#b7 ,contribution     
limit  7,a7 ,9 g5]al ,! aggregate am\nt 
( contributions 7o!r ?an qualifi$       

rollov] contributions describ$ 9        
subsection 7d77 = any taxable ye> to all
 univ]sal sav+s acc\nts ma9ta9$ = !     
b5efit ( an individual %all n exce$ !   
less] (-- 7i7 #aj1jjj1 or  7ii7 an am\nt
 equal to ! comp5sation 7)9 ! mean+ (   
section #bai7 includible 9 su*          
individual's gross income = su* taxable 
ye>4  7,b7 ,phase\t  7i7 ,9 g5]al ,!    
am\nt all[able z a contribution "u      
subp>agraph 7,a77i7 7det]m9$ )\t reg>d  
to ?is subp>agraph7 %all be r$uc$ by #ej
 = ea* #a1jjj 7or fraction !re(7 by :i* 
! taxpay]'s modifi$ adju/$ gross income 
exce$s ! applicable ?re%old am\nt4  7ii7
 ,applicable ?re%old am\nt ,= purposes (
 ?is subp>agraph1 ! t]m applicable      
?re%old am\nt means-- 7,i7 #djj1jjj1 9 !
 case ( a jo9t return or surviv+ sp\se1 
7,,ii7 #cjj1jjj 9 ! case ( a head (     
h\sehold1 or  7,,iii7 #bjj1jjj 9 ! case 
( any o!r return4  7iii7 ,modifi$ adju/$
 gross income ,= purposes ( ?is         
subp>agraph1 ! t]m modifi$ adju/$ gross 
income means adju/$ gross income        

increas$ by any am\nt exclud$ f gross   
income "u section #iaa1 #ica1 or #icc4  
7,c7 ,no contributions = dep5d5ts ,9 !  
case ( an individual :o is a dep5d5t (  
ano!r taxpay] = a taxable ye> beg9n+ 9 !
 cal5d> ye> 9 :i* su* individual's      
taxable ye> beg9s1 ! doll> am\nt "u     
subp>agraph 7,a7 = su* individual's     
taxable ye> %all be z]o4  7,d7          
,co/-(-liv+ adju/m5t ,9 ! case ( any    
taxable ye> beg9n+ 9 a cal5d> ye> aft]  
#bjbe1 ! doll> am\nts 9 subp>agraphs    
7,a77i7 & 7,b77ii7 %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>1 det]m9$ by sub/itut+     
cal5d> ye> #bjbd = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  ,if any     
am\nt aft] adju/m5t "u ! prec$+ s5t5ce  
is n a multiple ( #ajj1 su* am\nt %all  
be r\nd$ to ! next l[] multiple ( #ajj4 
7d7 ,qualifi$ rollov] contribution ,=   
purposes ( ?is section1 ! t]m qualifi$  
rollov] contribution means a            

contribution to a univ]sal sav+s acc\nt 
f ano!r su* acc\nt ( ! same individual1 
b only if su* am\nt is contribut$ n lat]
 ?an ! #fj? day aft] ! di/ribution f su*
 o!r acc\nt4  7e7 ,treatm5t ( acc\nt ^u 
dea? ,^u dea? ( any acc\nt hold] ( a    
univ]sal sav+s acc\nt-- 7#a7 ,sp\se or  
*ild ,9 ! case ( ! acc\nt hold]'s       
surviv+ sp\se or *ild acquir+ su* acc\nt
 hold]'s int]e/ 9 su* acc\nt by reason (
 ! dea? ( ! acc\nt hold]1 su* acc\nt    
%all be treat$ z if ! acquir+ sp\se or  
*ild 7 ! acc\nt hold]4  7#b7 ,o!r cases 
,9 any o!r case-- 7,a7 all am\nts 9 su* 
acc\nt %all be treat$ z di/ribut$ on !  
date ( su* individual's dea?1 &  7,b7   
su* acc\nt %all cease to be treat$ z a  
univ]sal sav+s acc\nt4  7f7 ,o!r special
 rules  7#a7 ,community prop]ty laws    
,?is section %all be appli$ )\t reg>d to
 any community prop]ty laws4  7#b7 ,loss
 ( taxation exemption ( acc\nt :]e      
individual engages 9 prohibit$          
transaction2 effect ( pl$g+ acc\nt z    
security ,rules simil> to ! rules (     

p>agraphs 7#b7 & 7#d7 ( section #djh7;e7
 %all apply to any univ]sal sav+s       
acc\nt4  7g7 ,reports ,! tru/ee ( a     
univ]sal sav+s acc\nt %all make su*     
reports reg>d+ su* acc\nt to ! ,secret>y
 & to ! acc\nt hold] ) respect to       
contributions1 di/ributions1 & su* o!r  
matt]s z ! ,secret>y may require4 ,su*  
reports %all be-- 7#a7 fil$ at su* "t & 
9 su* mann] z ! ,secret>y provides1 &   
7#b7 furni%$ to acc\nt hold]s-- 7,a7 n  
lat] ?an ,janu>y #ca ( ! cal5d> ye>     
foll[+ ! cal5d> ye> to :i* su* reports  
relate1 &  7,b7 9 su* mann] z !         
,secret>y provides4  4  7b7 ,tax on     
excess contributions  7#a7 ,9 g5]al     
,section #digc7;a7 ( su* ,code 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 univ]sal sav+s    
acc\nt 7z def9$ 9 section #ecj,u71  4   
7#b7 ,excess contribution ,section #digc
 ( su* ,code is am5d$ by add+ at ! end !
 foll[+ new subsection3  7i7 ,excess    

contributions to univ]sal sav+s acc\nts 
,= purposes ( ?is section-- 7#a7 ,9     
g5]al ,9 ! case ( univ]sal sav+s acc\nts
 7)9 ! mean+ ( section #ecj,u71 ! t]m   
excess contributions means ! sum (--    
7,a7 ! am\nt 7if any7 by :i* ! am\nt    
contribut$ = ! taxable ye> to su*       
acc\nts 7o!r ?an qualifi$ rollov]       
contributions 7z def9$ 9 section        
#ecj,u7d777 exce$s ! contribution limit 
"u section #ecj,u7c77#b7 = su* taxable  
ye>1 &  7,b7 ! am\nt det]m9$ "u ?is     
subsection = ! prec$+ taxable ye>1 r$uc$
 by ! sum (-- 7i7 ! di/ributions out ( !
 acc\nt = ! taxable ye>1 &  7ii7 ! am\nt
 7if any7 by :i* ! maximum am\nt        
all[able z a contribution "u section    
#ecj,u7c77#b7 = ! taxable ye> exce$s !  
am\nt contribut$ to ! acc\nts = !       
taxable ye>4  7#b7 ,special rule ,a     
contribution %all n be tak5 into acc\nt 
"u p>agraph 7#a7 if su* contribution    
7toge!r ) ! am\nt ( net income          
attributable to su* contribution7 is    
di/ribut$ to ! acc\nt hold] on or be=e !

 due date ( ! acc\nt hold]'s return (   
tax = su* taxable ye>4  4  7c7 ,tax on  
prohibit$ transactions ,section         
#dige7;e77#a7 ( su* ,code is am5d$ by   
/rik+ or at ! end ( subp>agraph 7,f71 by
 /rik+ ! p]iod at ! end ( subp>agraph   
7,g7 & ins]t+ 1 or1 & by add+ at ! end !
 foll[+ new subp>agraph3  7,h7 a        
univ]sal sav+s acc\nt 7z def9$ 9 section
 #ecj,u74  4  7d7 ,failure ,to provide  
reports on univ]sal sav+s acc\nts       
,section #ffic7;a77#b7 ( su* ,code is   
am5d$ by /rik+ & at ! end ( subp>agraph 
7,e71 by /rik+ ! p]iod at ! end (       
subp>agraph 7,f7 & ins]t+ 1 &1 & by     
ins]t+ aft] subp>agraph 7,f7 ! foll[+   
new subp>agraph3  7,g7 section #ecj,u7g7
 7relat+ to univ]sal sav+s acc\nts74  4 
7e7 ,con=m+ am5dm5t ,! table ( p>ts =   
sub*apt] ,f ( *apt] #a ( su* ,code is   
am5d$ by add+ at ! end ! foll[+ new     
item3  ,"p ,,ix4 ,univ]sal sav+s acc\nts
  4  7f7 ,effective date ,! am5dm5ts    
made by ?is section %all apply to       
taxable ye>s beg9n+ aft] ,decemb] #ca1  

#bjbd4