summary
Introduced
05/19/2020
05/19/2020
In Committee
05/19/2020
05/19/2020
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
A bill to create Federal child savings accounts, and for other purposes. This bill directs the Department of the Treasury to establish as a permanent program the Federal Child Savings Account Program not later than December 31, 2021. A program account shall be tax-exempt and distributions from an account shall be excludible from a child's gross income. The program allows the parent or guardian of a child under the age of 18 and a U.S. resident to make contributions to an account for the child's educational expenses. An account may also fund a Roth Individual Retirement account and an ABLE (i.e., Achieving a Better Life Experience) account for disabled individuals. Distributions from such accounts may begin on the earlier of the date such child attains the age of 26, receives an associate's or bachelor's degree, or enlists in active duty miliary service.
AI Summary
This bill establishes the Federal Child Savings Account Program, a permanent program to be run by the Department of the Treasury. The program allows parents or guardians to open tax-exempt savings accounts for children under age 18 to fund their future educational expenses, Roth IRAs, or ABLE accounts for disabled individuals. The government will make annual deposits of up to $500 into these accounts, with the amount phased out for higher-income families. The accounts cannot be accessed until the child turns 26, receives a degree, or enters military service, though some early withdrawals are permitted for qualified higher education costs. The bill also provides that the account balances will not be counted for means-tested federal program eligibility purposes.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
Read twice and referred to the Committee on Finance. (on 05/19/2020)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/senate-bill/3764/all-info | 05/20/2020 |
| BillText | https://www.congress.gov/116/bills/s3764/BILLS-116s3764is.pdf | 06/25/2020 |
| Bill | https://www.congress.gov/116/bills/s3764/BILLS-116s3764is.pdf.pdf | 06/25/2020 |
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