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S. 2471

401(Kids) Education Savings Account Modernization Act of 2016

401(Kids) Education Savings Account Modernization Act of 2016

This bill amends the Internal Revenue Code to: (1) limit the requirement for an income-based reduction in allowable contributions to a Coverdell education savings account to an individual who is the custodial parent of an account beneficiary (thus exempting non-custodians of the beneficiary from such reduction), (2) increase the annual contribution limit for such accounts, (3) allow the use of such an account to pay home school expenses, and (4) allow tax-free rollovers of amounts in a Coverdell education savings account to a Roth individual retirement account.

The Department of Education shall establish a website (to be known as 401Kids.gov) to provide free information on tax-favored education savings accounts.

Read twice and referred to the Committee on Finance.

Sen. Kirk, Mark Steven [R-IL](R-IL)Sponsor
4 cosponsors4 R
4cosponsors1committees2actions2related bills7subjects
  1. IntroReferral

    Read twice and referred to the Committee on Finance.

    Finance Committee
  2. IntroReferral10000

    Introduced in Senate

401(Kids) Education Savings Account Modernization Act of 2016 — Informed