,,ii  #aai? ,,congress  #a/ ,session    
,s4 #agah  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #ab1 #bjbe ,mr4   
,cruz introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to create inve/   
,am]ica acc\nts4  #a4 ,%ort title ,?is  
,act may be cit$ z ! ,inve/ ,am]ica     
,act4  #b4 ,inve/ ,am]ica 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 
,inve/ ,am]ica acc\nts  #ecj;,a4 ,inve/ 
,am]ica acc\nts  7a7 ,g5]al rule ,an    
inve/ ,am]ica 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 ,inve/ ,am]ica     
acc\nt ,= purposes ( ?is section--  7#a7
 ,9 g5]al ,! t]m inve/ ,am]ica acc\nt   
means a tru/ creat$ or organiz$ 9 !     

,unit$ ,/ates = ! exclusive b5efit ( an 
individual & :i* is designat$ 79 su*    
mann] z ! ,secret>y %all prescribe7 at !
 "t ( ! e/abli%m5t ( ! tru/ z an inve/  
,am]ica 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 7e71 no           
contribution w be accept$--  7i7 unless 
x is 9 ca%1 &  7ii7 if su* contribution 
w\ld result 9 aggregate contributions = 
! taxable ye> exce$+ ! contribution     
limit specifi$ 9 subsection 7c77#a74    
7,b7 ,no di/ribution 7o!r ?an a qualifi$
 rollov] di/ribution7 w be all[$ be=e ! 
date on :i* ! b5efici>y atta9s ! age (  
#ah4  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 section or :o has s   
demon/rat$ ) respect to any individual  
retirem5t plan4  7,d7 ,! int]e/ ( an    

individual 9 ! balance ( 8 acc\nt is    
non=feitable4  7,e7 ,! assets ( ! tru/  
%all n be comm+l$ ) o!r prop]ty except 9
 a common tru/ fund or common inve/m5t  
fund4  7,f7 ,no "p ( ! tru/ funds w be  
inve/$ 9 any asset o!r ?an eligible     
inve/m5ts4  7#b7 ,eligible inve/m5ts ,! 
t]m eligible inve/m5ts means any mutual 
fund or ex*ange trad$ fund :i*--  7,a7  
tracks ! returns ( ! ,/&>d & ,poor's    
#ejj /ock m>ket index1 &  7,b7 meets su*
 o!r requirem5ts z provid$ by !         
,secret>y4  7c7 ,treatm5t (             
contributions  7#a7 ,contribution limit 
,! contribution limit = any taxable ye> 
is #e1jjj4  7#b7 ,co/-(-liv+ adju/m5t   
7,a7 ,9 g5]al ,9 ! case ( any taxable   
ye> beg9n+ 9 a cal5d> ye> aft] #bjbf1 ! 
#e1jjj am\nt "u p>agraph 7#a7 %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> #bjbe = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  7,b7

 ,r\nd+ ,if any increase "u subp>agraph 
7,a7 is n a multiple ( #ajj1 su* am\nt  
%all be r\nd$ to ! next l[] multiple (  
#ajj4  7d7 ,di/ributions  7#a7 ,9 g5]al 
,any di/ribution f an inve/ ,am]ica     
acc\nt %all be includ$ 9 gross income ( 
! di/ributee 9 ! mann] z provid$ 9      
section #gb1 except t ! "* ( su* income 
%all be det]m9$ aft] ! application (    
section #a7;h77#ab74  7#b7 ,exceptions  
,p>agraph 7#a7 %all n apply to any      
qualifi$ rollov] contribution4  7e7     
,qualifi$ rollov] contribution ,=       
purposes ( ?is section1 ! t]m qualifi$  
rollov] contribution means--  7#a7 a    
contribution made pursuant to section   
#c7;a7 ( ! ,inve/ ,am]ica ,act1 or  7#b7
 an am\nt :i* is paid 9 a direct        
tru/ee-to-tru/ee transf] to an inve/    
,am]ica acc\nt ma9ta9$ = ! b5efit ( su* 
designat$ b5efici>y4  7f7 ,treatm5t aft]
 dea? ( acc\nt b5efici>y ,rules simil>  
to ! rules ( section #bbc7;f77#h7 %all  
apply = purposes ( ?is section4  7g7    
,cu/odial acc\nts ,= purposes ( ?is     

section1 a cu/odial acc\nt or an annuity
 contract issu$ by an insurance company 
qualifi$ to d bus9ess 9 a ,/ate %all be 
treat$ z a tru/ "u ?is section if--     
7#a7 ! cu/odial acc\nt or annuity       
contract w\ld1 except = ! fact t x is n 
a tru/1 con/itute a tru/ :i* meets !    
requirem5ts ( subsection 7b77#a71 &     
7#b7 9 ! case ( a cu/odial acc\nt1 !    
assets ( su* acc\nt are held by a bank  
7z def9$ 9 section #djh7n77 or ano!r    
p]son :o demon/rates1 to ! satisfaction 
( ! ,secret>y1 t ! mann] 9 :i* he w     
adm9i/] ! acc\nt w be consi/5t ) !      
requirem5ts ( ?is section4  ,= purposes 
( ?is title1 9 ! case ( a cu/odial      
acc\nt or annuity contract treat$ z a   
tru/ by reason ( ! prec$+ s5t5ce1 !     
p]son hold+ ! assets ( su* acc\nt or    
hold+ su* annuity contract %all be      
treat$ z ! tru/ee !re(4  7h7 ,reports ,!
 tru/ee ( an inve/ ,am]ica acc\nt %all  
make su* reports reg>d+ su* acc\nt to ! 
,secret>y & to ! b5efici>y ( ! acc\nt ) 
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$4  4  7b7 ,di/ribution tax$ at   
same rate z net capital ga9s ,section   
#a7;h7 ( ! ,int]nal ,rev5ue ,code (     
#aihf is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#ab7 ,di/ributions f   
inve/ ,am]ica acc\nts tax$ z net capital
 ga9 ,= purposes ( ?is subsection1 ! t]m
 net capital ga9 meant ! net capital ga9
 7det]m9$ )\t reg>d to ?is p>agraph7    
increas$ by ! am\nt ( di/ributions made 
dur+ ! taxable ye> f an inve/ ,am]ica   
acc\nt 7z def9$ 9 section #ecj;,a7 :i*  
are includible 9 income "u section      
#ecj;,a7d74  4  7c7 ,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 an inve/ ,am]ica acc\nt 
7z def9$ 9 section #ecj;,a71  4  7#b7   
,excess contribution ,section #digc (   
su* ,code is am5d$ by add+ at ! end !   
foll[+ new subsection3  7i7 ,excess     
contributions to inve/ ,am]ica acc\nts  
,= purposes ( ?is section1 9 ! case (   
inve/ ,am]ica acc\nts 7)9 ! mean+ (     
section #ecj;,a71 ! t]m excess          
contributions means ! sum (-- 7#a7 !    
am\nt by :i* ! am\nt contribut$ = !     
cal5d> ye> to su* acc\nt 7o!r ?an       
qualifi$ rollov] contributions 7z def9$ 
9 section #ecj;,a7e777 exce$s !         
contribution limit "u section           
#ecj;,a7c77#a71 &  7#b7 ! am\nt det]m9$ 
"u ?is subsection = ! prec$+ cal5d> ye>1
 r$uc$ by ! excess 7if any7 ( ! maximum 
am\nt all[able z a contribution "u      
section #ecj;,a7c77#a7 = ! cal5d> ye>   
ov] ! am\nt contribut$ to ! acc\nt = !  
cal5d> ye> 7o!r ?an qualifi$ rollov]    
contributions 7z s def9$774  4  7d7     
,failure ,to provide reports on inve/   
,am]ica acc\nts ,p>agraph 7#b7 ( section

 #ffic7;a7 ( ! ,int]nal ,rev5ue ,code ( 
#aihf 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 add+ at ! end ! foll[+ new           
subp>agraph3  7,g7 section #ecj;,a7h7   
7relat+ to inve/ ,am]ica acc\nts74  4   
7e7 ,con=m+ am5dm5t ,! table ( p>ts =   
sub*apt] ,f ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new item3  ,"p ,,ix4  
,inve/ ,am]ica acc\nts  4  7f7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbd4  #c4   
,f$]al contributions to inve/ ,am]ica   
acc\nts  7a7 ,9 g5]al ,z soon z         
practical aft] an individual is c]tifi$ 
z an eligible individual "u subsection  
7c71 ! ,secret>y ( ! ,treasury %all pay 
to ! inve/ ,am]ica acc\nt ( su* eligible
 individual an am\nt equal to #a1jjj4   
7b7 ,eligible individual ,= purposes (  
?is section1 ! t]m eligible individual  
means any individual :o-- 7#a7 is born  

aft] ,july #d1 #bjbf1  7#b7 is a ,unit$ 
,/ates citiz51 &  '7#c7 has at lea/ "o  
p>5t :o1 at ! "t ( ! individual's bir?1 
is a ,unit$ ,/ates citiz54  7c7         
,c]tification ( eligible individuals    
7#a7 ,9 g5]al ,! ,secret>y ( !          
,treasury1 9 consultation ) !           
,commission] ( ,social ,security1 %all  
e/abli% proc$ures = ! c]tification (    
individuals z eligible individuals4     
7#b7 ,tim+ ,no c]tification may be made 
"u ?is section m ?an #f mon?s aft] !    
date ( ! individual's bir?4  7d7        
,automatic e/abli%m5t ( inve/ ,am]ica   
acc\nts 9 c]ta9 cases  7#a7 ,9 g5]al ,if
 an eligible individual does n h an     
inve/ ,am]ica acc\nt1 ! ,secret>y %all  
e/abli% su* an acc\nt on behalf ( su*   
individual4  7#b7 ,selection ( acc\nt   
provid] ,! ,secret>y ( ! ,treasury %all 
develop rules = ! selection ( p]sons    
describ$ 9 section #ecj;,a7b77#a77;,c7 =
 ! e/abli%m5t ( inve/ ,am]ica acc\nts ( 
individuals to :om p>agraph 7#a7        
applies4 ,su* rules %all provide =      

selection bas$ on l[ fees1 hi/orical    
inve/m5t p]=mance1 adm9i/rative         
capabilities1 & su* o!r crit]ia z !     
,secret>y det]m9es appropriate4  7e7    
,tax treatm5t  7#a7 ,9 g5]al ,"p ,,iii (
 sub*apt] ,b ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #aci;,i ! foll[+ new      
section3  #aci;,j4 ,f$]al contributions 
to inve/ ,am]ica acc\nts ,gross income  
%all n include any contribution made by 
! ,secret>y to an inve/ ,am]ica acc\nt  
"u section #c7;a7 ( ! ,inve/ ,am]ica    
,act4  4  7#b7 ,cl]ical am5dm5t ,! table
 ( sections = "p ,,iii ( sub*apt] ,b (  
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] ! item    
relat+ to section #aci;,i ! foll[+ new  
item3  ,sec4 #aci;,j4 ,f$]al            
contributions to inve/ ,am]ica acc\nts4 
4  7#c7 ,effective date ,! am5dm5ts made
 by ?is section %all apply to taxable   
ye>s beg9n+ aft] ,decemb] #ca1 #bjbd4   
7f7 ,appropriation ,!re are h]eby       
appropriat$ su* sums z may be necess>y  

to make paym5ts "u subsection 7a74