,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #iefh  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,june #cj1 #bjbf,mr4  
,/eube 7= himself & ,mr4 ,boyle (       
,p5nsylvania7 introduc$ ! foll[+ bill2  
:i* 0 ref]r$ to ! ,committee on ,ways & 
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to e/abli% "n1    
image1 & lik5ess inve/m5t acc\nts =     
/ud5t-a?letes1 & = o!r purposes4  #a4   
,%ort title ,?is ,act may be cit$ z !   
,help+ ,und]graduate ,/ud5ts ,?rive )   
,long-,t]m ,e>n+s ,act or ! ,,hu/le     
,act4  #b4 ,,nil inve/m5t acc\nts  7a7  
,9 g5]al ,sub*apt] ,f ( *apt] #a ( !    
,int]nal ,rev5ue ,code ( #aihf1 z am5d$ 
by section #gjbjd ( ,public ,law        
#aai-ba1 is am5d$ by add+ at ! end !    
foll[+ new "p3  ,x ,,nil ,inve/m5t      
,acc\nts  #ecj;,b4 ,,nil inve/m5t       
acc\nts  7a7 ,g5]al rule ,an ,,nil      
inve/m5t acc\nt %all be exempt f        
taxation "u ?is subtitle4 ,not)/&+ !    
prec$+ s5t5ce1 ! ,,nil inve/m5t acc\nt  
%all be subject to ! taxes impos$ by    

section #eaa 7relat+ to imposition ( tax
 on unrelat$ bus9ess income ( *>itable  
organizations74  7b7 ,def9itions &      
special rules ,= purposes ( ?is section3
  7#a7 ,designat$ b5efici>y ,! t]m      
designat$ b5efici>y means ! eligible    
a?lete :o e/abli%$ ! ,,nil inve/m5t     
acc\nt & is ! own] ( su* acc\nt4  7#b7  
,eligible a?lete  7,a7 ,9 g5]al ,! t]m  
eligible a?lete means an individual :o--
  7i7 is enroll$ z a /ud5t at a         
p>ticipat+ in/itution ( high] education1
 &  7ii7 p>ticipates 9 an amateur or    
collegiate a?letic program4  7,b7       
,secret>ial au?ority ,! ,secret>y1 9    
consultation ) ! ,secret>y ( ,education1
 %all h ! au?ority to-- 7i7 fur!r def9e 
! crit]ia = p>ticipation 9 an amateur or
 collegiate a?letic program = purposes (
 subp>agraph 7,a77ii71  7ii7 e/abli%    
proc$ures = v]ify+ an individual's /atus
 z an eligible a?lete1 &  7iii7 issue   
guidance reg>d+ ! application ( !       
requirem5ts describ$ 9 subp>agraph 7,a7 
9 cases :]e an individual's enrollm5t or

 a?letic p>ticipation /atus *anges dur+ 
a taxable ye>4  7#c7 ,p>ticipat+        
in/itution ( high] education  7,a7 ,9   
g5]al ,= purposes ( ?is section1 ! t]m  
p>ticipat+ in/itution ( high] education 
means an in/itution ( high] education   
:i* elects 7pursuant to subp>agraph     
7,b77 to p>ticipate "u ?is section & to 
comply ) any requirem5ts applicable to  
su* in/itution ( high] education "u ?is 
section4  7,b7 ,election & revocation   
7i7 ,election ,any election made by an  
in/itution ( high] education to         
p>ticipate "u ?is section %all be       
effective = ! academic ye> ) respect to 
:i* x is made & = all subsequ5t academic
 ye>s &1 once made1 may be revok$ only  
pursuant to clause 7ii74  7ii7          
,revocation ,a revocation ( an election 
describ$ 9 clause 7i7 may be made by an 
in/itution ( high] education only if--  
7,i7 su* in/itution ( high] education   
provides notice ( su* revocation to all 
eligible a?letes enroll$ at su*         
in/itution ( high] education1 &  7,,ii7 

su* revocation takes effect no e>li] ?an
 ! fir/ academic ye> beg9n+ aft] ! date 
:i* is #ab mon?s aft] ! date on :i* !   
notice describ$ 9 subclause 7,i7 has be5
 provid$4  7,c7 ,in/itution ( high]     
education ,= purposes ( ?is section1 !  
t]m in/itution ( high] education has !  
same mean+ giv5 su* t]m 9 section #ajb (
 ! ,high] ,education ,act ( #aife 7#bj  
,u4,s4,c4 #ajjb74  7#d7 ,,nil inve/m5t  
acc\nt ,! t]m ,,nil inve/m5t acc\nt     
means a tru/ creat$ or organiz$ 9 !     
,unit$ ,/ates exclusively = ! purpose ( 
receiv+ contributions ( qualifi$ ,,nil  
income & provid+ di/ributions to !      
individual :o is ! designat$ b5efici>y (
 ! tru/ 7& designat$ z an ,,nil inve/m5t
 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    
unless x is 9 ca% & is made by an       
eligible a?lete f qualifi$ ,,nil income1
 or  7ii7 except 9 ! case ( rollov]     
contributions1 if su* contribution w\ld 

n be p]mitt$ "u p>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
 ,qualifi$ ,,nil income ,! t]m qualifi$ 
,,nil income means any income receiv$ by
 an eligible a?lete t is d]iv$ f ! use (
 su* a?lete's "n1 image1 or lik5ess1    
includ+ endorsem5ts1 appe>ances1 social 
m$ia cont5t creation1 & lic5s+          
arrangem5ts4  7#f7 ,contribution        
limitations ,no contribution w be       
accept$ to an ,,nil inve/m5t acc\nt =   
any eligible a?lete-- 7,a7 :i*1 = any   
taxable ye>1 is 9 excess ( ! doll> am\nt
 det]m9$ "u section #bejc7;b7 = ! cal5d>
 ye> 9 :i* su* taxable ye> began1 &     
7,b7 aft] ! end ( ! fif? taxable ye> 9  

:i* su* a?lete-- 7i7 has receiv$        
qualifi$ ,,nil income1 &  7ii7 0 enroll$
 at a p>ticipat+ in/itution ( high]     
education4  7#g7 ,treatm5t (            
contributions ,) respect to any qualifi$
 ,,nil income receiv$ by an eligible    
a?lete :i* is contribut$ to an ,,nil    
inve/m5t acc\nt1 at ! election ( su*    
eligible a?lete1 gross income %all n    
include su* qualifi$ ,,nil income4  7#h7
 ,treatm5t ( self-employm5t taxes  7,a7 
,9 g5]al ,= purposes ( *apt] #b 7relat+ 
to tax on self-employm5t income71 any   
qualifi$ ,,nil income contribut$ to an  
,,nil inve/m5t acc\nt = :i* an election 
has be5 made pursuant to p>agraph 7#g7  
%all n be tak5 into acc\nt z net e>n+s f
 self-employm5t 7)9 ! mean+ ( section   
#adjb7;a77 = ! taxable ye> (            
contribution4  7,b7 ,di/ributions ,any  
di/ribution f an ,,nil inve/m5t acc\nt t
 is includible 9 gross income "u        
subsection 7c77#a7 %all be treat$ z net 
e>n+s f self-employm5t 7)9 ! mean+ (    
section #adjb7;a77 = purposes ( *apt] #b

 9 ! taxable ye> ( di/ribution4  7#i7   
,limitations ,rules simil> to ! rules ( 
p>agraphs 7#d7 & 7#e7 ( section #ebi7;b7
 %all apply = purposes ( ?is section4   
7c7 ,tax treatm5t ( di/ributions  7#a7  
,9 g5]al ,any di/ribution f an ,,nil    
inve/m5t acc\nt %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 ,tax       
treatm5t ( di/ributions  7,a7 ,9 g5]al  
,= purposes ( apply+ p>agraph 7#a71 a   
di/ribution %all be treat$ z-- 7i7      
includible 9 gross income & tax$ z      
ord9>y income if made be=e ! date on :i*
 ! designat$ b5efici>y--  7,i7 graduates
 f a p>ticipat+ in/itution ( high]      
education 7z provid$ 9 subp>agraph      
7,d771 or  7,,ii7 transf]s f a          
p>ticipat+ in/itution ( high] education 
to a non-p>ticipat+ in/itution ( high]  
education 7z provid$ 9 subp>agraph      
7,e771 &  7ii7 includible 9 gross income
 & tax$ at ! rate applicable to long-t]m

 capital ga9s "u section #a7;h7 if made 
on or aft] ! date on :i* ! designat$    
b5efici>y-- 7,i7 graduates f a          
p>ticipat+ in/itution ( high] education 
7z provid$ 9 subp>agraph 7,d771 or      
7,,ii7 transf]s f a p>ticipat+          
in/itution ( high] education to a       
non-p>ticipat+ in/itution ( high]       
education 7z provid$ 9 subp>agraph      
7,e771  b1 = purposes ( clause 7ii71    
only to ! ext5t t su* di/ribution does n
 exce$ ! limitation describ$ 9          
subp>agraph 7,b7 = ! taxable ye>4  7,b7 
,limitation on pref]5tial tax treatm5t  
7i7 ,9 g5]al ,! am\nt ( di/ributions f  
an ,,nil inve/m5t acc\nt t may be tax$  
at ! rate applicable to long-t]m capital
 ga9 "u subp>agraph 7,a77ii7 dur+ any   
taxable ye> %all n exce$ ! am\nt        
describ$ "u section #a7;h77#a77;,b77i7 =
 an individual describ$ 9 section       
#a7;c74  7ii7 ,excess am\nts ,any       
di/ribution exce$+ ! limitation "u      
clause 7i7 %all be includible 9 gross   
income1 tax$ z ord9>y income1 & 7except 

9 ! case ( a qualifi$ di/ribution       
describ$ 9 p>agraph 7#c77;,b77 subject  
to ! additional tax "u p>agraph         
7#c77;,a74  7,c7 ,/ud5t transf]s betwe5 
in/itutions  7i7 ,9 g5]al ,9 ! case ( a 
designat$ b5efici>y :o transf]s f "o    
p>ticipat+ in/itution ( high] education 
to ano!r p>ticipat+ in/itution ( high]  
education 7ref]r$ to 9 ?is subp>agraph z
 ! subsequ5t in/itution71 ! graduation  
date = purposes ( ?is section %all be ! 
date on :i* ! designat$ b5efici>y       
graduates f ! subsequ5t in/itution4     
7ii7 ,notification requirem5t ,a        
designat$ b5efici>y :o transf]s to a    
subsequ5t in/itution %all notify !      
tru/ee ( ! ,,nil inve/m5t acc\nt ( su*  
transf] )9 #fj days ( enrollm5t at !    
subsequ5t in/itution4 ,! subsequ5t      
in/itution %all1 ^u ! reque/ ( !        
designat$ b5efici>y1 confirm su*        
enrollm5t to ! tru/ee ( ! ,,nil inve/m5t
 acc\nt4  7iii7 ,multiple transf]s ,!   
rules ( ?is p>agraph %all apply to      
designat$ b5efici>ies :o transf] betwe5 

multiple p>ticipat+ in/itutions ( high] 
education1 ) ea* subsequ5t in/itution   
be+ treat$ z ! relevant in/itution =    
purposes ( det]m9+ ! graduation date4   
7,d7 ,c]tification ( graduation ,!      
p>ticipat+ in/itution ( high] education 
f :i* ! designat$ b5efici>y graduates   
%all transmit docum5tation ( ! designat$
 b5efici>y's graduation directly to !   
tru/ee ( ! ,,nil inve/m5t acc\nt4 ,!    
,secret>y %all prescribe ! =m & mann] ( 
su* c]tification4  7,e7 ,transf] to     
non-p>ticipat+ in/itution ( high]       
education ,9 ! case ( a designat$       
b5efici>y :o transf]s f a p>ticipat+    
in/itution ( high] education to a       
non-p>ticipat+ in/itution ( high]       
education1 ! p>ticipat+ in/itution (    
high] education %all notify ! tru/ee ( !
 ,,nil inve/m5t acc\nt ( su* transf]4   
7#c7 ,additional tax = di/ributions n   
us$ = qualifi$ exp5ses  7,a7 ,9 g5]al ,!
 tax impos$ by ?is *apt] = any taxable  
ye> on any taxpay] :o receives a        
di/ribution f an ,,nil inve/m5t acc\nt--

 7i7 be=e ! date on :i* ! designat$     
b5efici>y graduates f an in/itution (   
high] education 7z provid$ 9 p>agraph   
7#b77;,d771 or  7ii7 9 ! case ( a       
di/ribution describ$ 9 p>agraph         
7#b77;,a77ii71 :i* is 9 excess ( !      
limitation "u p>agraph 7#b77;,b77i71    
%all be increas$ by #aj p]c5t ( ! am\nt 
:i* is includible 9 gross income1 unless
 su* di/ribution is a qualifi$          
di/ribution4  7,b7 ,qualifi$            
di/ributions ,= purposes ( subp>agraph  
7,a71 a di/ribution %all be treat$ z a  
qualifi$ di/ribution if--  7i7 !        
di/ribution is made to a b5efici>y 7or  
to ! e/ate ( ! designat$ b5efici>y7 on  
or aft] ! dea? ( ! designat$ b5efici>y1 
7ii7 ! di/ribution is attributable to ! 
designat$ b5efici>y's be+ disabl$ 7)9 ! 
mean+ ( section #gb7m77#g771  7iii7 !   
di/ribution is us$ = qualifi$ exp5ses ( 
! designat$ b5efici>y1 or  7iv7 !       
di/ribution is "p ( a rollov]           
contribution describ$ 9 p>agraph 7#d74  
7,c7 ,qualifi$ exp5ses ,= purposes (    

subp>agraph 7,b77iii71 ! t]m qualifi$   
exp5ses means exp5ses incurr$ by !      
designat$ b5efici>y = any ( ! foll[+3   
7i7 ,c>e] transition co/s1 includ+--    
7,i7 pr(essional tra9+1 c]tification1 or
 education co/s1  7,,ii7 mov+ exp5ses 7z
 def9$ 9 section #bag7;b77 relat$ to    
po/-a?letic c>e] opportunities1 or      
7,,iii7 pr(essional s]vices relat$ to   
c>e] plann+ & developm5t4  7ii7         
,qualifi$ high] education exp5ses 7z    
def9$ 9 section #ebi7;e77#c77 ( !       
designat$ b5efici>y4  7iii7 ,qualifi$   
m$ical exp5ses 7z def9$ 9 section       
#bac7;d77 ( ! designat$ b5efici>y to !  
ext5t su* exp5ses exce$ #g4e p]c5t ( !  
designat$ b5efici>y's adju/$ gross      
income = ! taxable ye> 9 :i* su* exp5ses
 are incurr$4  7iv7 ,su* o!r purposes z 
are det]m9$ appropriate by ! ,secret>y4 
7,d7 ,contributions return$ be=e c]ta9  
date ,subp>agraph 7,a7 %all n apply to !
 di/ribution ( any contribution made    
dur+ a taxable ye> 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  ,9 ! case ( su* a        
di/ribution1 = purposes ( section #fa1  
any net income describ$ 9 clause 7ii7   
%all be includ$ 9 gross income = !      
taxable ye> 9 :i* su* excess            
contribution 0 made4  7#d7 ,*ange 9     
b5efici>ies or programs  7,a7 ,rollov]s 
,p>agraph 7#a7 %all n apply to t portion
 ( any di/ribution f an ,,nil inve/m5t  
acc\nt :i*1 )9 #fj days ( su*           
di/ribution1 is transf]r$ into ano!r    
,,nil inve/m5t acc\nt = ! b5efit (--    
7i7 ! designat$ b5efici>y1 or  7ii7 an  
eligible a?lete :o is a memb] ( ! family
 ( su* b5efici>y4  7,b7 ,*ange 9        
designat$ b5efici>ies ,any *ange 9 !    
designat$ b5efici>y ( an ,,nil inve/m5t 
acc\nt %all n be treat$ z a di/ribution 
= purposes ( p>agraph 7#a7 if ! new     
b5efici>y is-- 7i7 an eligible a?lete = 

su* taxable ye>1 &  7ii7 a memb] ( !    
family ( ! =m] b5efici>y4  7,c7         
,limitation on c]ta9 rollov]s           
,subp>agraph 7,a7 %all n apply to any   
transf] if su* transf] occurs )9 #ab    
mon?s f ! date ( a previ\s transf] to   
any ,,nil inve/m5t acc\nt = ! b5efit ( !
 designat$ b5efici>y4  7#e7 ,special    
rules = apply+ e/ate & gift taxes )     
respect to acc\nt ,rules simil> to !    
rules ( p>agraphs 7#b71 7#d71 & 7#e7 (  
section #ebi7;c7 %all apply = purposes (
 ?is section4  7#f7 ,memb] ( ! family ,=
 purposes ( ?is subsection1 ! t]m memb] 
( ! family means1 ) respect to any      
designat$ b5efici>y1 an individual :o   
be>s a relation%ip to su* b5efici>y :i* 
is describ$ 9 section #ebi7;e77#b74     
7#g7 ,loss ( ,,nil inve/m5t acc\nt      
treatm5t ,if an ,,nil inve/m5t acc\nt is
 e/abli%$ = a designat$ b5efici>y1 no   
acc\nt subsequ5tly e/abli%$ = su*       
b5efici>y %all be treat$ z an ,,nil     
inve/m5t acc\nt4 ,! prec$+ s5t5ce %all n
 apply 9 ! case ( an acc\nt e/abli%$ =  

purposes ( a transf] describ$ 9 p>agraph
 7#d77;,a7 if ! transf]or acc\nt is     
clos$ z ( ! end ( ! #fj-;day p]iod      
ref]r$ to 9 su* p>agraph4  7#h7         
,transition to retirem5t acc\nts  7,a7  
,9 g5]al ,subject to subp>agraph 7,c71  
an individual :o has ceas$ to be an     
eligible a?lete = at lea/ #a ye> may    
elect to conv]t _! ,,nil inve/m5t       
acc\nt1 9 :ole or 9 "p1 to--  7i7 an    
individual retirem5t acc\nt 7z def9$ 9  
section #djh7;a771  7ii7 a ,ro? ,,ira 7z
 def9$ 9 section #djh;,a7b771 or  7iii7 
su* o!r retirem5t arrangem5ts z !       
,secret>y may specify 9 regulations4    
7,b7 ,tax treatm5t ,a conv]sion "u      
subp>agraph 7,a7 %all be treat$ z a     
rollov] contribution = purposes ( ?is   
title4  7,c7 ,lifetime limitation ,)    
respect to any individual describ$ 9    
subp>agraph 7,a71 ! am\nt ( any         
conv]sion ( any ,,nil inve/m5t acc\nt to
 any o!r acc\nt or arrangem5t describ$ 9
 clause 7i71 7ii71 or 7iii7 ( su*       
subp>agraph dur+ any taxable ye> %all n 

exce$ ! excess 7if any7 ( #ce1jjj ov] ! 
aggregate am\nt ( any prior conv]sions  
"u ?is p>agraph ) respect to su*        
individual = all prior taxable ye>s4    
7d7 ,tax treatm5t ( acc\nts ,rules      
simil> to ! rules ( p>agraphs 7#b7 &    
7#d7 ( section #djh7;e7 %all apply to   
any ,,nil inve/m5t acc\nt4  7e7         
,education requirem5ts  7#a7 ,9 g5]al ,!
 tru/ee ( an ,,nil inve/m5t acc\nt %all 
make available to ! designat$ b5efici>y 
educational mat]ials reg>d+-- 7,a7 !    
b5efits & rules ( ! ,,nil inve/m5t      
acc\nt1  7,b7 basic pr9ciples ( inve/+ &
 f9ancial plann+1  7,c7 ! importance (  
long-t]m f9ancial security1 &  7,d7 su* 
o!r topics z ! ,secret>y may specify 9  
regulations4  7#b7 ,deliv]y ( mat]ials  
,! educational mat]ials requir$ "u      
p>agraph 7#a7 %all be provid$ to a      
designat$ b5efici>y--  7,a7 ^u !        
e/abli%m5t ( an ,,nil inve/m5t acc\nt1 &
  7,b7 on an annual basis !reaft]4  7f7 
,regulations ,! ,secret>y %all prescribe
 su* regulations z may be necess>y to   

c>ry out ! purposes ( ?is section1      
includ+ regulations-- 7#a7 to en=ce !   
limitation describ$ 9 subsection        
7c77#g71  7#b7 provid+ = ! in=mation    
requir$ to be pres5t$ to e/abli% an     
,,nil inve/m5t acc\nt1  7#c7 to id5tify 
additional qualifi$ exp5ses pursuant to 
subsection 7c77#c77;,c77iv71  7#d7 to   
prev5t fraud & abuse ) respect to am\nts
 claim$ z qualifi$ exp5ses1  7#e7 to    
ensure prop] report+ & v]ification (    
,,nil income s\rces1  7#f7 to e/abli%   
proc$ures = track+ ! numb] ( taxable    
ye>s 9 :i* an eligible a?lete makes     
contributions to an ,,nil inve/m5t      
acc\nt1  7#g7 to e/abli% proc$ures =    
det]m9+ ! annual limit on pref]5tial    
capital ga9s treatm5t "u subsection     
7c77#b77;,b71  7#h7 to e/abli% proc$ures
 = ! transition ( ,,nil inve/m5t acc\nts
 to retirem5t acc\nts "u subsection     
7c77#h71 &  7#i7 to all[ = transf]s     
describ$ 9 subsection 7c77#d74  4  7b7  
,cl]ical am5dm5t ,! table ( p>ts =      
sub*apt] ,f ( *apt] #a ( su* ,code is   

am5d$ by add+ at ! end ! foll[+ new     
item3  ,"p ,x--,,nil ,inve/m5t ,acc\nts 
4  7c7 ,effective date ,! am5dm5ts made 
by ?is section %all apply to taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjbe4