I 111th CONGRESS 1st Session H. R. 532 IN THE HOUSE OF REPRESENTATIVES January 14, 2009 Mr. Neugebauer 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.

1.

Short title

This Act may be cited as the Education Savings Modernization Act of 2009.

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 2009, 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 2008 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, 2008.