[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 264 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 264

    To amend the Internal Revenue Code of 1986 to allow a lump sum 
   contribution to Coverdell education savings accounts whenever the 
                    contribution limit is increased.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 6, 2005

 Mr. Bradley of New Hampshire 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 allow a lump sum 
   contribution to Coverdell education savings accounts whenever the 
                    contribution limit is increased.

    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 ``Enhancing Resources Utilized in 
Developing Investments for Tuition Expenditures Act of 2003''.

SEC. 2. LUMP SUM CONTRIBUTION TO COVERDELL EDUCATION SAVINGS ACCOUNTS.

    (a) In General.--Clause (iii) of section 530(b)(1)(A) of the 
Internal Revenue Code of 1986 is amended by inserting ``and new limit 
lump sum contributions'' after ``rollover contributions''.
    (b) New Limit Lump Sum Contributions.--Subsection (b) of section 
530 of such Code is amended by adding at the end the following new 
paragraph:
            ``(6) New limit lump sum contributions.--The amount of the 
        new limit lump sum contribution for any taxable year may not 
        exceed the excess of--
                    ``(A) $250 multiplied by a fraction--
                            ``(i) the numerator of which is the amount 
                        in effect for the taxable year under paragraph 
                        (1)(A)(iii), and
                            ``(ii) the denominator of which is $250 or, 
                        if the beneficiary of the Coverdell education 
                        savings account was born after December 31, 
                        1997, the amount in effect under paragraph 
                        (1)(A)(iii) on the date of such birth, over
                    ``(B) the aggregate of the amounts determined under 
                subparagraph (A) with respect to such contributions for 
                all previous taxable years.''.
    (c) Tax on Excess Contributions.--
            (1) In general.--Subsection (e) of section 4973 of such 
        Code is amended by adding at the end the following new 
        paragraph:
            ``(3) Rule for new limit lump sum contribution.--In the 
        case of new limit lump sum contributions to Coverdell education 
        savings accounts maintained for the benefit of any one 
        beneficiary, the term `excess contributions' means the sum of--
                    ``(A) the amount by which the amount contributed 
                for the taxable year to such accounts exceeds the 
                dollar amount in effect under section 530(b)(6) (or, if 
                less, the sum of the maximum amounts permitted to be 
                contributed under section 530(c) by the contributors to 
                such accounts for such year), and
                    ``(B) the amount determined under this subsection 
                for the preceding taxable year, reduced by the sum of--
                            ``(i) the distributions out of the accounts 
                        for the taxable year (other than rollover 
                        distributions and contributions to which 
                        paragraph (1) applies), and
                            ``(ii) the excess (if any) of the maximum 
                        new limit lump sum contribution which may be 
                        contributed to the accounts for the taxable 
                        year over the new limit lump sum contribution 
                        contributed to the accounts for the taxable 
                        year.''.
            (2) Exception to annual rule.--Paragraph (2) of section 
        4973(e) of such Code is amended by adding after subparagraph 
        (B) the following new subparagraph:
                    ``(C) Any new limit lump sum contribution (as 
                defined in section 530(b)(6)).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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