[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2588 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2588

    To amend the Internal Revenue Code of 1986 to modify the annual 
      contribution limit for Coverdell education savings accounts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 6, 2007

  Mrs. Drake 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 modify the annual 
      contribution limit for Coverdell education savings 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 ``Comprehensive Coverdell 
Modernization Act of 2007''.

SEC. 2. MODIFICATION OF ANNUAL CONTRIBUTION LIMIT FOR COVERDELL 
              EDUCATION SAVINGS ACCOUNTS.

    (a) Increase of Annual Contribution Limit.--Subparagraph (A)(iii) 
of section 530(b)(1) of the Internal Revenue Code of 1986 (defining 
Coverdell education savings account) is amended by striking ``$2,000'' 
and inserting ``$4,000''.
    (b) Inflation Adjustment.--Subsection (b) of section 530 of such 
Code (relating to definitions and special rules) is amended by adding 
at the end the following new paragraph:
            ``(5) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 2008, the dollar amount 
        contained in paragraph (1)(A)(iii) shall be increased by an 
        amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2007' for `calendar year 1992' in 
                subparagraph (B) thereof.
        Any increase determined under the preceding sentence shall be 
        rounded to the nearest multiple of $100.''.
    (c) Provisions Made Permanent.--Title IX of the Economic Growth and 
Tax Relief Reconciliation Act of 2001 (relating to sunset of provisions 
of such Act) shall not apply to the amendments made by sections 401 and 
402 of such Act.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.
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