,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #hgji  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,may #g1 #bjbf ,ms4   
,/ev5s introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to all[ ! e/abli%m5t (   
home[n]%ip sav+s acc\nts4  #a4 ,%ort    
title ,?is ,act may be cit$ z !         
,home[n]%ip ,sav+s ,act4  #b4           
,home[n]%ip sav+s acc\nt  7a7 ,9 g5]al  
,"p ,,vii ( sub*apt] ,b ( *apt] #a ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #bbc ! foll[+ new
 section3  #bbc;,a4 ,home[n]%ip sav+s   
acc\nt  7a7 ,d$uction all[$ ,9 ! case ( 
an acc\nt b5efici>y1 !re %all be all[$ z
 a d$uction = ! taxable ye> an am\nt    
equal to ! aggregate am\nt paid 9 ca%   
dur+ su* taxable ye> by or on behalf (  
su* individual to a home[n]%ip sav+s    
acc\nt ( su* individual4  7b7           
,limitations  7#a7 ,annual doll>        
limitation ,! am\nt all[able z a        
d$uction "u subsection 7a7 to an        

individual = ! taxable ye> %all n       
exce$--  7,a7 #c1jjj 9 ! case ( a jo9t  
return1  7,b7 #b1ejj 9 ! case ( a head (
 h\sehold1 or  7,c7 #b1jjj 9 ! case (   
any o!r individual4  7#b7 ,limitation   
bas$ on e>n$ income  7,a7 ,9 g5]al ,!   
am\nt all[able z a d$uction "u          
subsection 7a7 %all n exce$ su*         
individual's e>n$ income = ! taxable    
ye>4  7,b7 ,special rule = jo9t returns 
,9 ! case ( an individual ^: e>n$ income
 is less ?an ! e>n$ income ( su*        
individual's sp\se & files a jo9t return
 = ! taxable ye>1 ! am\nt all[able z a  
d$uction "u subsection 7a7 %all n exce$ 
! excess 7if any7 (-- 7i7 ! e>n$ income 
( ! taxpay] = su* taxable ye>1 ov]  7ii7
 ! d$uction all[able "u subsection 7a7  
to su* individual's sp\se = su* taxable 
ye>4  7,c7 ,e>n$ income ,= purposes (   
?is p>agraph1 ! t]m e>n$ income has !   
mean+ giv5 su* t]m 9 section            
#cb7;c77#b74  7#c7 ,limitation bas$ on  
modifi$ adju/$ gross income  7,a7 ,9    
g5]al ,! maximum am\nt t may o!rwise be 

all[able z a d$uction "u subsection 7a7 
%all be r$uc$ 7b n bel[ z]o7 by an am\nt
 :i* be>s ! same ratio to su* maximum   
am\nt z-- 7i7 9 ! case ( a jo9t return--
  7,i7 ! excess 7if any7 ( ! modifi$    
adju/$ gross income ( ! acc\nt b5efici>y
 = su* taxable ye> ov] #bdb1jjj1 be>s to
  7,,ii7 #aj1jjj1  7ii7 9 ! case ( a    
head ( h\sehold-- 7,i7 ! excess 7if any7
 ( ! modifi$ adju/$ gross income ( !    
acc\nt b5efici>y = su* taxable ye> ov]  
#bjj1jjj1 be>s to  7,,ii7 #bj1jjj1 or   
7iii7 9 ! case ( any o!r individual--   
7,i7 ! excess 7if any7 ( ! modifi$      
adju/$ gross income ( ! acc\nt b5efici>y
 = su* taxable ye> ov] #aec1jjj1 be>s to
  7,,ii7 #ae1jjj4  7,b7 ,modifi$ adju/$ 
gross income ,= purposes ( ?is p>agraph1
 ! t]m modifi$ adju/$ gross income means
 ! adju/$ gross income ( ! taxpay] = !  
taxable ye> increas$ by any am\nt       
exclud$ f gross income "u section #iaa1 
#ica1 or #icc4  7#d7 ,d5ial ( d$uction  
to dep5dants ,no d$uction %all be all[$ 
"u ?is section to any individual )      

respect to :om a d$uction "u section    
#aea is all[able to ano!r taxpay] = a   
taxable ye> beg9n+ 9 ! cal5d> ye> 9 :i* 
su* individual's taxable ye> beg9s4  7c7
 ,def9itions & special rules ,= purposes
 ( ?is section-- 7#a7 ,home[n]%ip sav+s 
acc\nt ,! t]m home[n]%ip sav+s acc\nt   
means a tru/ creat$ or organiz$ 9 !     
,unit$ ,/ates exclusively = ! purpose ( 
pay+ ! qualifi$ home[n]%ip exp5ses ( !  
acc\nt b5efici>y 7& designat$ z a       
home[n]%ip sav+s acc\nt at ! "t creat$  
or organiz$71 b only if ! writt5 gov]n+ 
in/rum5t creat+ ! tru/ meets ! foll[+   
requirem5ts3  7,a7 ,no contribution w be
 accept$-- 7i7 if su* contribution w\ld 
result 9 lifetime aggregate             
contributions to ! acc\nt exce$+        
#dj1jjj1  7ii7 unless x is 9 ca%1 or    
7iii7 if su* acc\nt b5efici>y has n made
 ! c]tification requir$ "u subp>agraph  
7,f74  7,b7 ,! 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,c7 ,no "p 
( ! tru/ assets w be inve/$ 9 life      
insurance contracts4  7,d7 ,! assets ( !
 tru/ %all n be comm+l$ ) o!r prop]ty   
except 9 a common tru/ fund or common   
inve/m5t fund4  7,e7 ,! acc\nt b5efici>y
 has atta9$ ! age ( #ah4  7,f7 ,! acc\nt
 b5efici>y c]tifies1 "u p5alty ( p]jury1
 at ! "t t ! acc\nt is e/abli%$ t su*   
acc\nt b5efici>y w\ld be a fir/-"t      
homebuy] ) respect to a pur*ase ( a     
pr9cipal resid5ce on ! date ( su*       
e/abli%m5t4  7#b7 ,qualifi$ home[n]%ip  
exp5ses ,! t]m qualifi$ home[n]%ip      
exp5ses means a d[n paym5t or clos+ co/s
 relat+ to ! pur*ase ( ! prim>y resid5ce
 ( ! acc\nt b5efici>y ( a home[n]%ip    
sav+s acc\nt if su* acc\nt b5efici>y is 
a fir/-"t homebuy]4  7#c7 ,no           
contribution = individual :o is n a     
fir/-"t homebuy] ,9 ! case ( an         
individual :o w\ld n be a fir/-"t       
homebuy] ) respect to a pur*ase ( a     
pr9cipal resid5ce on ! date ( any       

contribution to a home[n]%ip sav+s      
acc\nt1 p>agraph 7#a77;,a77i7 %all be   
appli$ by sub/itut+ #j = #dj1jjj4  7#d7 
,fir/-"t homebuy] ,! t]m fir/-"t        
homebuy] means an individual if--  7,a7 
su* individual is a fir/-"t homebuy] 7z 
def9$ 9 section #cf7;c77#a771 &  7,b7   
su* individual has nev] pur*as$ a       
resid5tial prop]ty us+ an am\nt :i* 0   
exclud$ f ! gross income ( su*          
individual by reason ( subsection       
7e77#a74  7#e7 ,acc\nt b5efici>y ,! t]m 
acc\nt b5efici>y means ! individual on  
^: behalf ! home[n]%ip sav+s acc\nt is  
e/abli%$4  7#f7 ,c]ta9 rules to apply   
,rules simil> to ! foll[+ rules %all    
apply = purposes ( ?is section3  7,a7   
,section #bai7;d77#b7 7relat+ to no     
d$uction = rollov]s74  7,b7 ,section    
#bai7;f77#c7 7relat+ to "t :5           
contributions deem$ made74  7,c7        
,section #bai7;f77#e7 7relat+ to employ]
 paym5ts74  7,d7 ,section #djh7;g7      
7relat+ to community prop]ty laws74  7d7
 ,tax treatm5t ( acc\nts  7#a7 ,9 g5]al 

,a home[n]%ip sav+s acc\nt is exempt f  
taxation "u ?is subtitle unless su*     
acc\nt has ceas$ to be a home[n]%ip     
sav+s acc\nt4 ,not)/&+ ! prec$+ s5t5ce1 
any su* acc\nt is subject to ! taxes    
impos$ by section #eaa 7relat+ to       
imposition ( tax on unrelat$ bus9ess    
income ( *>itable1 etc4 organizations74 
7#b7 ,acc\nt t]m9ations  7,a7           
,acquisition ( pr9cipal resid5ce ,if !  
acc\nt b5efici>y acquires an own]%ip    
int]e/ 9 a pr9cipal resid5ce--  7i7 ea* 
home[n]%ip sav+s acc\nt ( su* b5efici>y 
%all cease to be a home[n]%ip sav+s     
acc\nt z ( ! close ( ! #fj-;day p]iod   
beg9n+ on ! date ( su* acquisition1 &   
7ii7 ! balance ( su* acc\nt z ( su* date
 %all be treat$ z di/ribut$ to su*      
b5efici>y4  7,b7 ,prohibit$             
transactions1 etc ,rules simil> to !    
rules ( p>agraphs 7#b7 & 7#d7 ( section 
#djh7;e7 %all apply to any home[n]%ip   
sav+s acc\nt1 & any am\nts treat$ z     
di/ribut$ "u su* rules %all be treat$ z 
n us$ to pay qualifi$ home[n]%ip        

exp5ses4  7e7 ,tax treatm5t (           
di/ributions  7#a7 ,am\nts us$ =        
qualifi$ home[n]%ip exp5ses ,any am\nt  
paid or di/ribut$ out ( a home[n]%ip    
sav+s acc\nt :i* is us$ exclusively to  
pay qualifi$ home[n]%ip exp5ses ( any   
acc\nt b5efici>y %all n be includible 9 
gross income4  7#b7 ,inclusion ( am\nts 
n us$ = qualifi$ home[n]%ip exp5ses ,any
 am\nt paid or di/ribut$ out ( a        
home[n]%ip sav+s acc\nt :i* is n us$    
exclusively to pay ! qualifi$ home[n]%ip
 exp5ses ( ! acc\nt b5efici>y %all be   
includ$ 9 ! gross income ( su*          
b5efici>y4  7#c7 ,excess contributions  
return$ be=e due date ( return  7,a7 ,9 
g5]al ,if any excess contribution is    
contribut$ = a taxable ye> to any       
home[n]%ip sav+s acc\nt ( an individual1
 p>agraph 7#b7 %all n apply to          
di/ributions f ! home[n]%ip sav+s       
acc\nts ( su* individual 7to ! ext5t su*
 di/ributions d n exce$ ! aggregate     
excess contributions to all su* acc\nts 
( su* individual = su* ye>7 if--  7i7   

su* di/ribution is receiv$ by !         
individual on or be=e ! la/ day         
prescrib$ by law 7includ+ ext5sions (   
"t7 = fil+ su* individual's return = su*
 taxable ye>1 &  7ii7 su* di/ribution is
 accompani$ by ! am\nt ( net income     
attributable to su* excess contribution4
  ,any net income describ$ 9 clause 7ii7
 %all be includ$ 9 ! gross income ( !   
individual = ! taxable ye> 9 :i* x is   
receiv$4  7,b7 ,excess contribution ,=  
purposes ( subp>agraph 7,a71 ! t]m      
excess contribution means any           
contribution if-- 7i7 aft] su*          
contribution1 ! aggregate contribution  
to home[n]%ip sav+s acc\nts ( ! acc\nt  
b5efici>y exce$s ! am\nt 9 effect "u    
subsection 7c77#a77;,a77i71 or  7ii7 if 
! am\nt ( su* contribution is n all[able
 z a d$uction by reason ( p>agraph      
7#b77;,a7 or 7#c77;a7 ( subsection 7b74 
7#d7 ,additional tax = di/ributions n   
us$ = home[n]%ip exp5ses  7,a7 ,9 g5]al 
,! tax impos$ by ?is *apt] = any taxable
 ye> on any taxpay] :o receives a paym5t

 or di/ribution f a home[n]%ip sav+s    
acc\nt :i* is includible 9 gross income 
%all be increas$ by #bj 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 !
 acc\nt b5efici>y 7or to ! e/ate ( su*  
acc\nt b5efici>y7 on or aft] ! dea? (   
su* acc\nt b5efici>y1 or  7ii7          
attributable to su* acc\nt b5efici>y's  
be+ disabl$ 7)9 ! mean+ ( section       
#gb7m77#g774  7#e7 ,rollov] contribution
 ,an am\nt is describ$ 9 ?is p>agraph z 
a rollov] contribution if x meets !     
foll[+ requirem5ts3  7,a7 ,9 g5]al      
,p>agraph 7#b7 %all n apply to any am\nt
 paid or di/ribut$ f a home[n]%ip sav+s 
acc\nt to ! acc\nt b5efici>y to ! ext5t 
! am\nt receiv$ is paid into a          
home[n]%ip sav+s acc\nt = ! b5efit ( su*
 b5efici>y n lat] ?an ! #fj? day aft] ! 
day on :i* ! b5efici>y receives ! paym5t
 or di/ribution4  7,b7 ,limitation ,?is 
p>agraph %all n apply to any am\nt      
describ$ 9 subp>agraph 7,a7 receiv$ by  

an individual f a home[n]%ip sav+s      
acc\nt if1 at any "t dur+ ! #a-ye> p]iod
 end+ on ! day ( su* receipt1 su*       
individual receiv$ any o!r am\nt        
describ$ 9 subp>agraph 7,a7 f a         
home[n]%ip sav+s acc\nt :i* 0 n         
includible 9 ! individual's gross income
 because ( ! application ( ?is p>agraph4
  7#f7 ,special rules = dea? & divorce  
,rules simil> to ! rules ( p>agraphs    
7#g7 & 7#h7 ( section #bbc7;f7 %all     
apply = purposes ( ?is section4  7#g7   
,disall[ance ( exclud$ am\nts z         
d$uction1 cr$it1 or exclusion ,no       
d$uction1 cr$it1 or exclusion %all be   
all[$ to ! taxpay] "u any o!r section ( 
?is *apt] = any qualifi$ home[n]%ip     
exp5ses to ! ext5t tak5 into acc\nt 9   
det]m9+ ! am\nt ( ! exclusion "u        
p>agraph 7#a74  7f7 ,sal>y r$uction     
prohibit$ ,no employ] %all directly     
r$uce ! wages or sal>y ( an employee by 
reason ( a contribution made by su*     
employ] to a home[n]%ip sav+s acc\nt on 
behalf ( su* employee4  7g7 ,inflation  

adju/m5t  7#a7 ,9 g5]al ,9 ! case ( any 
taxable ye> beg9n+ aft] #bjbf1 ! doll>  
am\nts 9 subsection 7b7 %all be increas$
 by an am\nt equal to--  7,a7 su* doll> 
am\nt1 multipli$ by  7,b7 ! 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> #bjbd =
 cal5d> ye> #bjaf 9 subp>agraph 7ii7    
!re(4  7#b7 ,r\nd+ ,if any increase "u  
p>agraph 7#a7 is n a multiple ( #ajj1   
su* increase %all be r\nd$ to ! ne>e/   
multiple ( #ajj4  7h7 ,reports  7#a7 ,9 
g5]al ,! tru/ee ( a home[n]%ip sav+s    
acc\nt %all make su* reports reg>d+ su* 
acc\nt to ! ,secret>y & to ! acc\nt     
b5efici>y ) respect to contributions1   
di/ributions1 & su* o!r matt]s z !      
,secret>y may require4  7#b7 ,rollov]   
di/ributions ,9 ! case ( any di/ribution
 describ$ 9 subsection 7e77#e71 ! (fic] 
or employee hav+ control ( ! home[n]%ip 
sav+s acc\nt 7or _! designee7 %all      
provide a report to ! tru/ee ( !        
home[n]%ip sav+s acc\nt to :i* !        

di/ribution is made4 ,su* report %all   
include in=mation ) respect to !        
contributions1 di/ributions1 & e>n+s ( !
 home[n]%ip sav+s acc\nt z ( ! date ( ! 
di/ribution describ$ 9 su* subsection1  
toge!r ) su* o!r matt]s z ! ,secret>y   
may require4  7#c7 ,"t & mann] ,!       
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 ! ,secret>y det]m9es       
appropriate4  4  7b7 ,d$uction all[$    
above ! l9e ,section #fb7;a7 ( su* ,code
 is am5d$ by ins]t+ aft] p>agraph 7#ba7 
! foll[+ new p>agraph3  7#bb7           
,home[n]%ip sav+s acc\nts ,! d$uction   
all[$ by section #bbc;,a4  4  7c7       
,exclusions = employ] contributions to  
home[n]%ip sav+s acc\nts  7#a7          
,exclusion f income tax  7,a7 ,9 g5]al  
,"p ,,iii ( sub*apt] ,b ( *apt] #a ( su*
 ,code is am5d$ by ins]t+ aft] section  
#aci;,i ! foll[+ new section3  #aci;,j4 
,home[n]%ip sav+s acc\nt contributions  
,9 ! case ( an acc\nt b5efici>y 7z def9$

 9 section #bbc;,a7c77#e771 gross income
 does n include am\nts contribut$ by su*
 acc\nt b5efici>y's employ] to any      
home[n]%ip sav+s acc\nt 7z def9$ 9      
section #bbc;,a7c77#a77 ( su* acc\nt    
b5efici>y if su* contribution1 tak5 9   
aggregate ) all o!r contributions 9 all 
taxable ye>s to home[n]%ip sav+s acc\nts
 7z s def9$7 ( su* b5efici>y1 does n    
exce$ ! am\nt 9 effect "u section       
#bbc;,a7c77#a77;,a77i74  4  7,b7        
,cl]ical am5dm5t ,! table ( sections =  
"p ,,iii ( sub*apt] ,b ( *apt] #a ( su* 
,code is am5d$ by ins]t+ aft] ! item    
relat+ to section #aci;,i ! foll[+ new  
item3  ,sec4 #aci;,j4 ,home[n]%ip sav+s 
acc\nt contributions4  4  7#b7          
,exclusion f employm5t taxes  7,a7      
,social security taxes  7i7 ,9 g5]al    
,section #caba7;a7 ( su* ,code is am5d$ 
by /rik+ or at ! end ( p>agraph         
7#bb77;,b71 by /rik+ ! p]iod at ! end ( 
p>agraph 7#bc7 & ins]t+ 1 or 1 & by     
ins]t+ aft] p>agraph 7#bc7 ! foll[+ new 
p>agraph3  7#bd7 any paym5t made to or =

 ! b5efit ( an employee if at ! "t ( su*
 paym5t x is reasonable to believe t !  
employee w be able to exclude su* paym5t
 f income "u section #aci;,j4  4  7ii7  
,con=m+ am5dm5t to ,social ,security    
,act ,section #bji7;a7 ( ! ,social      
,security ,act is am5d$ by /rik+ or at !
 end ( p>agraph 7#ai71 by /rik+ 74 at ! 
end ( p>agraph 7#bj7 & ins]t+ 2 or1 & by
 ins]t+ aft] p>agraph 7#bj7 ! foll[+ new
 p>agraph3  7#ba7 any reimbursem5t :i*  
is excludable f gross income "u section 
#aci;,j ( ! ,int]nal ,rev5ue ,code (    
#aihf4  4  7,b7 ,railroad retirem5t tax 
,section #cbca7;e7 ( su* ,code is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#ac7 ,home[n]%ip sav+s acc\nt          
contributions ,! t]m #8comp5sation' %all
 n include any paym5t made to or = !    
b5efit ( an employee if at ! "t ( su*   
paym5t x is reasonable to believe t !   
employee w be able to exclude su* paym5t
 f income "u section #aci;,j4  4  7,c7  
,unemploym5t tax ,section #ccjf7;b7 (   
su* ,code is am5d$ by /rik+ or at ! end 

( p>agraph 7#ai77;,b71 by /rik+ ! p]iod 
at ! end ( p>agraph 7#bj7 & ins]t+ 2 or1
 & by ins]t+ aft] p>agraph 7#bj7 !      
foll[+ new p>agraph3  7#ba7 any paym5t  
made to or = ! b5efit ( an employee if  
at ! "t ( su* paym5t x is reasonable to 
believe t ! employee w be able to       
exclude su* paym5t f income "u section  
#aci;,j4  4  7,d7 ,)hold+ tax ,section  
#cdja7;a7 ( su* ,code is am5d$ by /rik+ 
or at ! end ( p>agraph 7#bb71 by /rik+ !
 p]iod at ! end ( p>agraph 7#bc7 &      
ins]t+ 2 or1 & by ins]t+ aft] p>agraph  
7#bc7 ! foll[+ new p>agraph3  7#bd7 any 
paym5t made to or = ! b5efit ( an       
employee if at ! "t ( su* paym5t x is   
reasonable to believe t ! employee w be 
able to exclude su* paym5t f income "u  
section #aci;,j4  4  7#c7 ,employ]      
contributions requir$ to be %[n on ,w-#b
 ,section #fjea7;a7 ( su* ,code is am5d$
 by /rik+ & at ! end ( p>agraph 7#af71  
by /rik+ ! p]iod at ! end ( p>agraph    
7#ag7 & ins]t+ 1 &1 & by ins]t+ aft]    
p>agraph 7#ag7 ! foll[+ new p>agraph3   

7#ah7 ! am\nt contribut$ to any         
home[n]%ip sav+s acc\nt 7z def9$ 9      
section #bbc;,a7c77#a77 ( su* employee4 
4  7d7 ,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    
home[n]%ip sav+s acc\nt 7)9 ! mean+ (   
section #bbc;,a74  4  7#b7 ,excess      
contribution ,section #digc ( su* ,code 
is am5d$ by add+ at ! end ! foll[+ new  
subsection3  7i7 ,excess contributions  
to home[n]%ip sav+s acc\nt  7#a7 ,9     
g5]al ,= purposes ( ?is section1 9 !    
case ( home[n]%ip sav+s acc\nts 7z def9$
 9 section #bbc;,a71 ! t]m excess       
contributions means ! sum (-- 7,a7 !    
am\nt ( any excess contribution 7z def9$
 9 section #bbc;,a7e77#c77;,b7 = !      
taxable ye>1 plus  7,b7 ! excess 7if    
any7 (-- 7i7 ! am\nt det]m9$ "u ?is     
subsection = ! prec$+ taxable ye>1 ov]  
7ii7 ! di/ribution out ( ! home[n]%ip   

sav+s acc\nts :i* 7 includ$ 9 gross     
income "u section #bbc;,a7e77#a7 dur+ ! 
taxable ye>4  7#b7 ,treatm5t ( return$  
excess contributions ,= purposes ( ?is  
subsection1 any contribution :i* is     
di/ribut$ out ( ! home[n]%ip sav+s      
acc\nt 9 a di/ribution to :i* section   
#bbc;,a7e77#c77;,a7 applies %all be     
treat$ z an am\nt n contribut$4  4  7e7 
,tax on prohibit$ transactions  7#a7    
,section #dige7;c7 ( su* ,code is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#h7 ,special rule = home[n]%ip sav+s   
acc\nts ,an individual = ^: b5efit a    
home[n]%ip sav+s acc\nt 7)9 ! mean+ (   
section #bbc;,a7c77#a77 is e/abli%$ %all
 be exempt f ! tax impos$ by ?is section
 ) respect to any transaction conc]n+   
su* acc\nt 7:i* w\ld o!rwise be taxable 
"u ?is section7 if1 ) respect to su*    
transaction1 ! acc\nt ceases to be a    
home[n]%ip sav+s acc\nt by reason ( !   
application ( section #bbc;,a7d77#b7 to 
su* acc\nt4  4  7#b7 ,section           
#dige7;e77#a7 ( su* ,code is am5d$ by   

/rik+ or at ! end ( subp>agraph 7,f71 by
 r$esignat+ subp>agraph 7,g7 z          
subp>agraph 7,h71 & by ins]t+ aft]      
subp>agraph 7,f7 ! foll[+ new           
subp>agraph3  7,g7 a home[n]%ip sav+s   
acc\nt describ$ 9 section #bbc;,a7c74  4
  7f7 ,p5alty = failure to file reports 
,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         
#bbc;,a7h7 7relat+ to home[n]%ip sav+s  
acc\nts74  4  7g7 ,con=m+ am5dm5ts  7#a7
 ,section #bf7;b77#b7 ( su* ,code is    
am5d$ by /rik+ & at ! end ( subp>agraph 
7,y71 by /rik+ ! p]iod at ! end (       
subp>agraph 7,z7 & ins]t+ 1 &1 & by     
ins]t+ aft] subp>agraph 7,z7 ! foll[+   
new subp>agraph3  7,,aa7 section        
#bbc;,a7e77#b7 7relat+ to additional tax
 on home[n]%ip sav+s acc\nt n us$ =     
qualifi$ home[n]%ip exp5ses74  4  7#b7  
,section #djh7;e77#b77;ii7 ( su* ,code  

is am5d$ by ins]t+ or to a home[n]%ip   
sav+s acc\nt "u section #bbc;,a7e77#g7  
be=e ! p]iod4  7#c7 ,section            
#ecj7;d77#i77;,a77ii7 ( su* ,code is    
am5d$ by ins]t+ 1 to a home[n]%ip sav+s 
acc\nt "u section #bbc;,a7e77#g71 aft]  
section #djh7;e77#b74  7#d7 ,section    
#hgg;,a ( su* ,code is am5d$-- 7,a7 9   
subsection 7e77#b7 by ins]t+ a          
home[n]%ip sav+s acc\nt 7z def9$ 9      
section #bbc;,a71 aft] section #bbc711 &
  7,b7 9 subsection 7g77#f7 by ins]t+   
#bbc;,a7e77#d711 aft] #ebi;,a7c77#c714  
7#e7 ,! table ( sections = "p ,,vii (   
sub*apt] ,b ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #bbc ! foll[+ new item3  ,sec4  
#bbc;,a4 ,home[n]%ip sav+s acc\nt4  4   
7h7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjbf4