[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3278 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3278

   To amend the Internal Revenue Code of 1986 to increase the amount 
    allowable as a first-year contribution to education individual 
 retirement accounts and to adjust for inflation the amount allowable 
         thereafter as an annual contribution to such accounts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 25, 1998

Mr. Weldon of Florida introduced the following bill; which was referred 
                   to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to increase the amount 
    allowable as a first-year contribution to education individual 
 retirement accounts and to adjust for inflation the amount allowable 
         thereafter as an annual contribution to such accounts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``College Education and Graduation 
Enhancement (COLLEGE) Act''.

SEC. 2. EDUCATION INDIVIDUAL RETIREMENT ACCOUNTS.

    (a) 1st-Year Contributions.--
            (1) In general.--Clause (ii) of section 530(b)(1)(A) of the 
        Internal Revenue Code of 1986 is amended by striking ``$500'' 
        and inserting ``the contribution limit for such taxable year''.
            (2) Definition.--Subsection (b) of section 530 of such Code 
        is amended by adding at the end the following new paragraph:
            ``(4) Contribution limit.--The term `contribution limit' 
        means--
                    ``(A) $5,000 for the taxable year in which such 
                account is created or organized, and
                    ``(B) $500 for each taxable year thereafter for 
                which a contribution may be made.''
            (3) Conforming amendments.--
                    (A) Subparagraph (C) of section 530(d)(4) of such 
                Code is amended by striking ``$500'' and inserting 
                ``the contribution limit for such taxable year''.
                    (B) Subparagraph (A) of section 4973(e)(1) of such 
                Code is amended by striking ``$500'' and inserting 
                ``the contribution limit (as defined in section 
                530(b)(4)) for such taxable year''.
    (b) Adjustment for Inflation.--Subsection (b) of section 530 of 
such Code (as amended by subsection (a)(2) of this section) is further 
amended by adding at the end the following new paragraph:
            ``(5) Inflation adjustment.--
                    ``(A) In general.--In the case of a taxable year 
                beginning in a calendar year after 1998, the $500 
                amount contained in paragraph (4)(B) shall be increased 
                by an amount equal to--
                            ``(i) $500, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `1997' for `1992' in 
                        subparagraph (B) thereof.
                    ``(B) Rounding.--If any increase determined under 
                subparagraph (A) is not a multiple of $5, such increase 
                shall be rounded to the next higher multiple of $5.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.
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