II 110th CONGRESS 1st Session S. 157 IN THE SENATE OF THE UNITED STATES January 4, 2007 Ms. Cantwell introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To permanently increase the maximum annual contribution allowed to be made to Coverdell education savings accounts.

1.

Short title

This Act may be cited as The Education Savings for Students Act of 2007.

2.

Increase in maximum annual contribution for Coverdell Education Savings accounts

(a)

In general

Section 530(b)(1)(A)(iii) of the Internal Revenue Code of 1986 (defining Coverdell education savings account) is amended by striking $2,000 and inserting $5,000. (b)

Conforming amendment

Section 4973(e)(1)(A) of the Internal Revenue Code of 1986 is amended by striking $2,000 and inserting $5,000. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2006. (d)

Permanent extension of modifications

Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset provisions) shall not apply to section 401 of such Act (relating to modifications to education individual retirement accounts).