,i #aai? ,,congress #b;d ,session ,h4 ,r4 #hgad ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,may #g1 #bjbf,mr4 ,?ompson ( ,p5nsylvania 7= himself & ,ms4 ,bonamici7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to e/abli% skill sav+s acc\nts4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,skill ,sav+s ,acc\nt ,act ( #bjbf4 #b4 ,skill sav+s acc\nt 7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #aci,l ! foll[+ new section3 #aci,m4 ,skill sav+s acc\nt 7a7 ,exclusion f gross income ,gross income ( an eligible employee does n include-- 7#a7 am\nts contribut$ to a skill sav+s acc\nt ( su* employee by su* employee or ! employ] ( su* employee1 or 7#b7 any am\nt paid or di/ribut$ out ( a skill sav+s acc\nt :i* is us$ exclusively to pay ! qualifi$ education exp5ses ( ! acc\nt b5efici>y4 7b7 ,eligible employee ,= purposes ( ?is section1 ! t]m eligible employee means an individual1 ) respect to any taxable ye>-- 7#a7 employ$ 9 ! ,unit$ ,/ates dur+ su* taxable ye>1 & 7#b7 :o is n a dep5d5t 7z def9$ 9 section #aeb7 ( any o!r taxpay] = su* taxable ye>4 7c7 ,limitation on exclusion ,subsection 7a7 %all n apply to s mu* ( any contribution to a skill sav+s acc\nt ( an employee = a taxable ye> z exce$s-- 7#a7 9 ! case ( a contribution by an employ]1 ! excess (-- 7,a7 #e1bej1 ov] 7,b7 ! am\nt 7if any7 exclud$ f ! gross income ( su* employee "u section #abg7;a77#a7 = su* taxable ye>1 & 7#b7 9 ! case ( a contribution by ! employee1 any am\nt :i* tak5 9 aggregate ) all contributions made by su* employee dur+ ! taxable ye> exce$s #aj1jjj4 7d7 ,skill sav+s acc\nt ,= purposes ( ?is section1 ! t]m skill sav+s acc\nt means a tru/ creat$ or organiz$ 9 ! ,unit$ ,/ates z a skill sav+s acc\nt exclusively = ! purpose ( pay+ ! qualifi$ education exp5ses ( ! acc\nt b5efici>y1 b only if ! writt5 gov]n+ in/rum5t creat+ ! tru/ meets ! foll[+ requirem5ts3 7#a7 ,no contribution w be accept$ unless x is 9 ca%4 7#b7 ,! tru/ee is a bank 7z def9$ 9 section #djh7n771 an insurance company 7z def9$ 9 section #haf71 or ano!r p]son :o demon/rates to ! satisfaction ( ! ,secret>y t ! mann] 9 :i* su* p]son w adm9i/] ! tru/ w be consi/5t ) ! requirem5ts ( ?is section4 7#c7 ,! assets ( ! tru/ w n be comm+l$ ) o!r prop]ty except 9 a common tru/ fund or common inve/m5t fund4 7#d7 ,no "p ( ! tru/ assets w be inve/$ 9 life insurance contracts4 7#e7 ,! int]e/ ( an individual 9 ! balance 9 8 acc\nt is non=feitable4 7e7 ,qualifi$ education exp5ses ,= purposes ( ?is section1 ! t]m qualifi$ education exp5ses means am\nts paid or incurr$ by ! employee if su* am\nt w\ld be educational assi/ance 7z def9$ 9 section #abg7;c77#a77 if su* am\nt 7 paid by ! employ] ( su* employee4 7f7 ,am\nts n us$ = qualifi$ education exp5ses 7#a7 ,9 g5]al ,any am\nt paid or di/ribut$ f a skill sav+s acc\nt :i* is n us$ exclusively to pay ! qualifi$ education exp5ses ( ! acc\nt b5efici>y %all be includ$ 9 ! gross income ( su* acc\nt b5efici>y4 7#b7 ,additional tax on di/ributions n us$ = qualifi$ educational exp5ses ,! tax impos$ by ?is *apt] on ! acc\nt b5efici>y :o has n atta9$ age #fe = any taxable ye> 9 :i* !re is a paym5t or di/ribution f a skill sav+s acc\nt ( su* b5efici>y :i* is includible 9 gross income "u p>agraph 7#a7 %all be increas$ by #bj p]c5t ( ! am\nt :i* is s includible4 7#c7 ,excess contribution return$ be=e due date ( return ,if any excess contribution is contribut$ = a taxable ye> to any skill sav+s acc\nt ( an individual1 p>agraph 7#a7 %all n apply to di/ributions f ! skill 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-- 7,a7 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 & 7,b7 su* di/ribution is accompani$ by ! am\nt ( net income attributable to su* excess contribution4 ,any net income describ$ 9 subp>agraph 7,b7 %all be includ$ 9 ! gross income ( ! individual = ! taxable ye> 9 :i* x is receiv$4 7#d7 ,excess contribution ,= purposes ( p>agraph 7#c71 ! t]m excess contribution means any contribution :i* is n excludable f gross income "u subsection 7a74 7g7 ,tax treatm5t ( acc\nt ,a skill sav+s acc\nt is exempt f taxation "u ?is subtitle unless su* acc\nt has ceas$ to be a skill sav+s acc\nt4 ,not)/&+ ! prec$+ s5t5ce1 any su* acc\nt is subject to ! taxes impos$ by section #eaa4 7h7 ,employee2 employ] ,= purposes ( ?is section1 ! t]ms employee & employ] %all be appli$ z su* t]ms are appli$ 9 section #abg4 7i7 ,report+ ,! ,secret>y may require ! tru/ee ( a skill sav+s acc\nt to make su* reports 7at su* "t & 9 su* mann] z ! ,secret>y det]m9es appropriate7 reg>d+ su* acc\nt to ! ,secret>y & to ! acc\nt b5efici>y ) respect to contributions1 di/ributions1 ! return ( excess contributions1 & su* o!r matt]s z ! ,secret>y det]m9es appropriate4 4 7b7 ,implem5t+ regulations ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all issue su* implem5t+ regulations z ! ,secret>y det]m9es appropriate to implem5t ! am5dm5ts made by ?is section4 7c7 ,excess contributions ,section #digc ( su* ,code is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 9 p>agraph 7#e71 by /rik+ or1 7,b7 9 p>agraph 7#f71 by ins]t+ or aft] ! comma1 & 7,c7 by ins]t+ aft] p>agraph 7#f7 ! foll[+ new p>agraph3 7#g7 a skill sav+s acc\nt 7)9 ! mean+ ( section #abg;,a7d774 1 & 7#b7 by add+ at ! end ! foll[+ new subsection3 7i7 ,skill sav+s acc\nt ,= purposes ( ?is section1 9 ! case ( skill sav+s acc\nts 7)9 ! mean+ ( section #abg;,a7d771 ! t]m excess contribution means ! sum (-- 7#a7 ! aggregate am\nt contribut$ = ! taxable ye> to ! acc\nts :i* is n excludable f gross income "u section #aci,m7a71 & 7#b7 ! am\nt det]m9$ "u ?is subsection = ! prec$+ taxable ye>1 r$uc$ by ! sum (-- 7,a7 ! di/ributions out ( ! acc\nts :i* 7 includ$ 9 gross income "u section #aci,m7f77#a71 & 7,b7 ! excess 7if any7 (-- 7i7 ! maximum am\nt excludable f gross income "u section #aci 7a77#a7 = ! taxable ye>1 ov] 7ii7 ! am\nt contribut$ to ! acc\nts = ! taxable ye>4 ,= purposes ( ?is subsection1 any contribution :i* is di/ribut$ out ( ! skill sav+s acc\nt 9 a di/ribution to :i* section #aci,m7f77#a7 applies %all be treat$ z an am\nt n contribut$4 4 7d7 ,cl]ical am5dm5t ,! table ( sections = "p ,,iii ( sub*apt] ,b ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #aci,l ! foll[+ new item3 ,sec4 #aci,m4 ,skill sav+s acc\nt4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbe4