I 

114TH CONGRESS 

1ST SESSION H. R. 4045 

To establish USAccounts, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 17, 2015 

Mr. CROWLEY (for himself and Mr. ELLISON) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

To establish USAccounts, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘USAccounts: Investing in America’s Future Act of 

6 2015’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. USAccount Fund. 

Sec. 4. USAccounts. 

Sec. 5. Assignment, alienation, and treatment of deceased individuals. 

Sec. 6. Rules governing USAccounts relating to investment, accounting, and reporting. 

Sec. 7. USAccount Fund Board. 


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Sec. 8. Fiduciary responsibilities. 

Sec. 9. Accounts disregarded in determining eligibility for Federal benefits. 

Sec. 10. Reports. 

Sec. 11. Tax provisions. 

Sec. 12. Earned Income Tax Credit outreach. 

1 (c) DEFINITIONS.—For purposes of this Act— 

2 (1) USACCOUNT FUND.—The term 

3 ‘‘USAccount Fund’’ means the fund established 

4 under section 3. 

5 (2) USACCOUNT.—The term ‘‘USAccount’’ 

6 means an account established under section 4. 

7 (3) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of the Treasury or the Secretary’s del9 egate. 

10 (4) USACCOUNT FUND BOARD.—The term 

11 ‘‘USAccount Fund Board’’ means the board estab12 lished pursuant to section 7. 

13 (5) EXECUTIVE DIRECTOR.—The term ‘‘Execu14 tive Director’’ means the executive director ap15 pointed pursuant to section 7. 

16 SEC. 2. FINDINGS. 

17 The Congress finds the following: 

18 (1) Americans recognize the importance of sav19 ings to create a more secure financial future for 

20 their family but barriers to entry have blocked par21 ticipation in savings programs, leading to drastic 

22 disparities in asset building and wealth creation. 


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1 (2) Most working families in America lack sav2 ings and face financial insecurity as a result. Forty3 four percent of families are ‘‘liquid asset poor’’, 

4 meaning they lack accessible savings to survive for 

5 three months at the Federal poverty level. 

6 (3) Of that number, over two-thirds of African7 Americans (67 percent) could be considered ‘‘liquid 

8 asset poor’’ as are nearly three-fourths of Latinos 

9 (71 percent). 

10 (4) Families with children face additional bar11 riers to building savings. These families are more 

12 likely than childless households to live in asset pov13 erty. 

14 (5) There is a strong link between savings and 

15 economic opportunity. Children in the poorest fifth 

16 of households who manage to move up the income 

17 ladder as adults have almost ten times the wealth of 

18 those who remain at the bottom. 

19 (6) Children’s savings accounts programs are 

20 evidence-based and have been tested throughout the 

21 country. In 2003, the Saving for Education, Entre22 preneurship, and Downpayment (SEED) national 

23 demonstration project was established to evaluate 

24 the policy and practice of savings accounts for chil25 dren. SEED found that even very low-income parVerDate Sep 11 2014 19:19 Nov 25, 2015 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4045.IH H4045

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1 ents will save and invest for their children’s future 

2 if given the opportunity. 

3 (7) In 2011, the city of San Francisco began 

4 offering child savings accounts, expanding them to 

5 all children enrolled in public kindergarten starting 

6 in 2013. Their experiment proves what SEED docu7 mented in 2003—very low-income parents will save 

8 and invest for their children’s future if given the op9 portunity. 

10 (8) Data from San Francisco’s nascent Kinder11 garten to College Account program demonstrates 

12 that families, even those of lower income, are con13 tributing their own funds towards their child’s edu14 cation at a rate of four times higher than Americans 

15 of all income limits are towards tax advantaged 529 

16 college savings plans. 

17 (9) Even a small amount of children’s savings 

18 can have a significant impact on college success, a 

19 key driver of economic mobility. Low- and moderate20 income children with less than $500 saved for col21 lege are three times more likely to enroll in college 

22 and four times more likely to graduate than children 

23 with no savings. 

24 (10) In the 4 years that the San Francisco 

25 Pilot program has been in existence, families have 


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1 deposited over $1 million in new savings, helping to 

2 build assets for participating families. 

3 (11) In order to expand economic opportunity 

4 and spur economic growth, the United States should 

5 promote savings and investments for all Americans. 

6 SEC. 3. USACCOUNT FUND. 

7 (a) ESTABLISHMENT.—There is established in the 

8 Treasury of the United States a fund to be known as the 

9 ‘‘USAccount Fund’’. 

10 (b) AMOUNTS HELD BY FUND.—The USAccount 

11 Fund consists of the sum of all amounts paid into the 

12 Fund under this Act, increased by the total net earnings 

13 from investments of sums held in the Fund or reduced 

14 by the total net losses from investments of sums held in 

15 the Fund, and reduced by the total amount of payments 

16 made from the Fund (including payments for administra17 tive expenses). 

18 (c) USE OF FUND.— 

19 (1) IN GENERAL.—The sums in the USAccount 

20 Fund are appropriated and shall remain available 

21 without fiscal year limitation— 

22 (A) to make contributions to USAccounts, 

23 (B) to invest under section 6, 

24 (C) to make distributions in accordance 

25 with this Act, 


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1 (D) to pay the administrative expenses of 

2 carrying out this Act, and 

3 (E) to purchase insurance as provided in 

4 section 8(c)(2). 

5 (2) EXCLUSIVE PURPOSES.—The sums in the 

6 USAccount Fund shall not be appropriated for any 

7 purpose other than the purposes specified in this 

8 section and may not be used for any other purpose. 

9 (d) TRANSFERS TO USACCOUNT FUND.—The Sec10 retary shall make transfers from the general fund of the 

11 Treasury to the USAccount Fund as follows: 

12 (1) AUTOMATIC CONTRIBUTION.—Upon receipt 

13 of a certification under section 4(b)(2) with respect 

14 to an individual, the Secretary shall transfer $500 to 

15 the USAccount of the individual. 

16 (2) MATCHING CONTRIBUTIONS.—Upon receipt 

17 of each certification under section 4(d) with respect 

18 to an individual, the Secretary shall transfer the 

19 matching amount to the USAccount of the indi20 vidual. 

21 (e) PRIVATE CONTRIBUTIONS.—The Executive Di22 rector shall pay into the USAccount Fund such amounts 

23 as are contributed under section 4(c). 

24 (f) PROHIBITION ON USE OF PAYROLL TAXES TO

25 FUND USACCOUNTS.—The USAccount Fund and 


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1 USAccounts are wholly separate and unique from the So2 cial Security system. No amount from any tax on employ3 ment may be contributed to the USAccount Fund or 

4 USAccounts. 

5 SEC. 4. USACCOUNTS. 

6 (a) IN GENERAL.— 

7 (1) ESTABLISHMENT.—The Executive Director 

8 shall establish in the USAccount Fund an account 

9 (to be known as a ‘‘USAccount’’) for each qualifying 

10 account holder certified under subsection (b). Each 

11 such account shall be identified to its account holder 

12 by means of a unique personal identifier currently 

13 recognized by the Internal Revenue Service and shall 

14 remain in the USAccount Fund unless transferred 

15 to private management under subsection (g). 

16 (2) ACCOUNT BALANCE.—The balance in an ac17 count holder’s USAccount at any time is the excess 

18 of— 

19 (A) the sum of— 

20 (i) all deposits made into the 

21 USAccount Fund and credited to the ac22 count under paragraph (3), and 

23 (ii) the total amount of allocations 

24 made to and reductions made in the ac25 count pursuant to paragraph (4), over 


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1 (B) the amounts paid out of the account 

2 with respect to such individual under subsection 

3 (d). 

4 (3) CREDITING OF CONTRIBUTIONS.—Pursuant 

5 to regulations which shall be prescribed by the Exec6 utive Director, the Executive Director shall credit to 

7 each USAccount the amounts paid into the 

8 USAccount Fund under section 3(d) which are at9 tributable to the account holder of such account. 

10 (4) ALLOCATION OF EARNINGS AND LOSSES.— 

11 The Executive Director shall allocate to each 

12 USAccount an amount equal to the net earnings and 

13 net losses from each investment of sums in the 

14 USAccount Fund which are attributable, on a pro 

15 rata basis, to sums credited to such account, re16 duced by an appropriate share of the administrative 

17 expenses paid out of the net earnings, as determined 

18 by the Executive Director. 

19 (b) QUALIFYING ACCOUNT HOLDER.—For purposes 

20 of this Act— 

21 (1) IN GENERAL.—The term ‘‘qualifying ac22 count holder’’ means any individual who— 

23 (A) was born after December 31, 2017, 

24 (B) has not yet attained the age of 18 

25 years, and 


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1 (C) has a valid, unique, Federal Govern2 ment issued identification number recognized by 

3 the Internal Revenue Service. 

4 (2) CERTIFICATION OF ACCOUNT HOLDERS.— 

5 On the date on which a qualifying account holder is 

6 registered for a USAccount, the Secretary shall cer7 tify to the Executive Director the name of such 

8 qualifying account holder. 

9 (c) PRIVATE CONTRIBUTIONS.— 

10 (1) IN GENERAL.—The Executive Director shall 

11 accept cash contributions from any person (including 

12 churches, charities, private foundations, businesses, 

13 or civic leagues) for payment into the USAccount 

14 Fund if such contribution is identified (in such man15 ner as the Executive Director may require) with the 

16 account holder of a USAccount to whom it is to be 

17 credited at the time the contribution is made. 

18 (2) ALTERNATIVE METHODS OF CONTRIBU19 TION.— 

20 (A) PAYROLL DEDUCTION.—Under regula21 tions prescribed by the Executive Director and 

22 at the election of the employer, contributions 

23 under paragraph (1) may be made through pay24 roll deductions. 


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1 (B) TAX REFUNDS.—Under regulations 

2 prescribed by the Secretary, contributions under 

3 paragraph (1) may be made by an election to 

4 contribute all or a portion of the tax refund of 

5 the contributor. 

6 (3) ANNUAL LIMITATION.—No contribution 

7 may be accepted under paragraph (1)— 

8 (A) unless it is in cash, 

9 (B) after the date on which the USAccount 

10 holder ceases to be a qualifying account holder, 

11 and 

12 (C) except in the case of matching con13 tributions under subsection (d), if such con14 tribution would result in aggregate contribu15 tions for the calendar year exceeding $2,000. 

16 (d) GOVERNMENT MATCHING CONTRIBUTION.— 

17 (1) IN GENERAL.—Upon such showing as the 

18 Executive Director may require to establish the basis 

19 for certification, the Executive Director shall, with 

20 respect to each private contribution to the account 

21 of an account holder which is made before such ac22 count holder attains age 18, certify to the Secretary 

23 the matching amount with respect to such contribu24 tion. 

25 (2) MATCHING AMOUNT.— 


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1 (A) IN GENERAL.—For purposes of this 

2 subsection, the term ‘‘matching amount’’ 

3 means, an amount equal to 100 percent of con4 tributions made by the account holder (or a 

5 legal guardian of the account holder) to the 

6 USAccount of an individual during any cal7 endar year beginning after the calendar year in 

8 which the USAccount is established, not in ex9 cess of $500 for the calendar year. 

10 (B) PHASEOUT BASED ON EARNED IN11 COME CREDIT PHASEOUT.—The $500 amount 

12 in subparagraph (A) shall be zero if the ad13 justed gross income (or, if greater, the earned 

14 income) of the taxpayer for the taxable year as 

15 exceeds the phaseout amount. For purposes of 

16 this paragraph, terms used in the preceding 

17 sentence which are used in section 32 of the In18 ternal Revenue Code of 1986 shall have the 

19 meanings given such terms by such section 32. 

20 (e) DISTRIBUTIONS.— 

21 (1) IN GENERAL.—No amount may be distrib22 uted from a USAccount before the date on which the 

23 account holder attains the age of 18. 

24 (2) HIGHER EDUCATION EXPENSES.—Para25 graph (1) shall not apply to amounts paid for qualiVerDate Sep 11 2014 19:19 Nov 25, 2015 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4045.IH H4045

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1 fied tuition and related expenses (as defined in sec2 tion 25A(f)(1) of the Internal Revenue Code of 

3 1986) of the account holder if the account holder is 

4 an eligible student (as defined in section 25A(b)(3) 

5 of such Code) with respect to such expenses. 

6 (3) ROLLOVER.— 

7 (A) IN GENERAL.—Not later than 180 

8 days after the date on which the account holder 

9 attains the age of 18, the balance of such indi10 vidual’s account shall be transferred to a 

11 USAccount IRA established on behalf of the in12 dividual and shall be treated as a rollover con13 tribution which meets the requirements of sec14 tion 408(d)(3) of such Code. 

15 (B) USACCOUNT IRA.— 

16 (i) IN GENERAL.—Except as provided 

17 in clauses (ii) and (iii), a USAccount IRA 

18 is an individual retirement account (as de19 fined in section 7701(a)(37) of such Code) 

20 which is established by the Executive Di21 rector and designated at the time of the 

22 establishment of the account as a 

23 USAccount IRA. 

24 (ii) DISTRIBUTIONS.—No amount 

25 may be distributed from a USAccount IRA 


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1 to an account holder or other beneficiary 

2 earlier than the account holder attains the 

age of 591 3 ⁄2, except— 

4 (I) distributions which are made 

5 to a beneficiary (or to the estate of 

6 the account holder) upon death of the 

7 account holder, 

8 (II) distributions described in 

9 paragraph (2), 

10 (III) qualified first-time home11 buyer distributions (as defined in sec12 tion 72(t)(8) of such Code), 

13 (IV) distributions for qualified 

14 medical expenses, 

15 (V) any distribution which would 

16 not be includible in gross income if 

17 made from a qualified ABLE program 

18 (as defined in section 529A(b) of such 

19 Code) with respect to the account 

20 holder or a member of the family (as 

21 defined in section 529A(e)(4)) of the 

22 account holder, 

23 (VI) any distribution used to pre24 vent foreclosure on the principal resi25 dence of the account holder, and 


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1 (VII) any distribution used to 

2 start a small business. 

3 Any distribution described in subclauses 

4 (I) through (VII) shall not be included in 

5 gross income. 

6 (iii) NO ROLLOVERS FROM

7 USACCOUNT IRA.—No amounts may be 

8 rolled over from a USAccount IRA. 

9 (f) RIGHTS OF LEGAL GUARDIAN.—Until the account 

10 holder of a USAccount attains age 18, any rights or duties 

11 of the account holder under this Act with respect to such 

12 account shall be exercised or performed by the legal guard13 ian of such account holder. 

14 (g) PRIVATE MANAGEMENT.— 

15 (1) IN GENERAL.—The account holder of a 

16 USAccount may elect, under regulations prescribed 

17 by the Secretary, to transfer the USAccount to a 

18 trustee who meets the requirements of paragraph 

19 (2). 

20 (2) TRUSTEE REQUIREMENTS.—A trustee 

21 meets the requirements of this paragraph if the 

22 trustee— 

23 (A) is a bank (as defined in section 

24 408(n)) or another person who demonstrates to 

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1 ner in which that person will administer the 

2 USAccount will be consistent with the require3 ments of this Act or who has so demonstrated 

4 with respect to any USAccount, 

5 (B) agrees to a reasonable cap on its fees 

6 and costs, as determined by the Treasury, for 

7 the management of USAccounts, 

8 (C) provides an investment fund that 

9 maximizes growth over time while minimizing 

10 risk, and 

11 (D) provides the safeguards with respect to 

12 USAccounts required by the Secretary. 

13 (3) ADDITIONAL REQUIREMENTS.—For pur14 poses of this subsection, rules similar to the rules of 

15 paragraphs (3), (4), and (5) of section 408 of the 

16 Internal Revenue Code of 1986 shall apply. 

17 (h) ADJUSTMENT FOR INFLATION.— 

18 (1) IN GENERAL.—For each calendar year be19 ginning after 2015, the dollar amounts under sec20 tions 3(e)(1), 4(c)(3)(C), and 4(d)(2) shall each be 

21 increased by such dollar amount multiplied by the 

22 cost-of-living adjustment determined under section 

23 1(f)(3) of the Internal Revenue Code of 1986 deter24 mined by substituting ‘‘calendar year 2014’’ for 

25 ‘‘calendar year 1992’’ in subparagraph (B) thereof. 


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1 (2) ROUNDING.—If any amount adjusted under 

2 paragraph (1) is not a multiple of $50, such amount 

3 shall be rounded to the next lowest multiple of $50. 

4 SEC. 5. ASSIGNMENT, ALIENATION, AND TREATMENT OF 

5 DECEASED INDIVIDUALS. 

6 (a) ASSIGNMENT AND ALIENATION.—Under regula7 tions which shall be prescribed by the Executive Director, 

8 rules relating to assignment and alienation applicable 

9 under chapter 84 of title 5, United States Code, with re10 spect to amounts held in accounts in the Thrift Savings 

11 Fund shall apply with respect to amounts held in 

12 USAccounts in the USAccount Fund. 

13 (b) TREATMENT OF ACCOUNTS OF DECEASED INDI14 VIDUALS.—In the case of a deceased account holder of a 

15 USAccount which has an account balance greater than 

16 zero, upon receipt of notification of such individual’s 

17 death, the Executive Director shall close the account and 

18 shall transfer the balance in such account to the duly ap19 pointed legal representative of the estate of the deceased 

20 account holder, or if there is no such representative, to 

21 the person or persons determined to be entitled thereto 

22 under the laws of the domicile of the deceased account 

23 holder. 


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1 SEC. 6. RULES GOVERNING USACCOUNTS RELATING TO IN2 VESTMENT, ACCOUNTING, AND REPORTING. 

3 (a) DEFAULT INVESTMENT PROGRAM.—The Sec4 retary shall establish, and the USAccount Fund Board 

5 shall invest in, a retirement savings bond that earns inter6 est at the same annual percentage rate as securities issued 

7 to the Government Securities Investment Fund in the 

8 Thrift Savings Plan for Federal employees as determined 

9 under section 8438(e)(2) of title 5, United States Code, 

and shall be compounded daily at 1 10 ⁄260 of the annual per11 centage rate. 

12 (b) OTHER RULES.— 

13 (1) IN GENERAL.—Under regulations which 

14 shall be prescribed by the Executive Director, and 

15 subject to the provisions of this Act, the following 

16 provisions shall apply with respect to the USAccount 

17 Fund and accounts maintained in such Fund in the 

18 same manner and to the same extent as such provi19 sions relate to the Thrift Savings Fund and the ac20 counts maintained in the Thrift Savings Fund: 

21 (A) Section 8438 of title 5, United States 

22 Code (relating to investment of the Thrift Sav23 ings Fund). 

24 (B) Section 8439(b) of such title (relating 

25 to engagement of independent qualified public 

26 accountant). 


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1 (C) Section 8439(c) of such title (relating 

2 to periodic statements and summary descrip3 tions of investment options). 

4 (D) Section 8439(d) of such title (relating 

5 to assumption of risk). 

6 (2) APPLICATION RULES.—For purposes of 

7 paragraph (1), references in such sections 8438 and 

8 8439 to an employee, Member, former employee, or 

9 former Member shall be deemed references to an ac10 count holder of a USAccount in the USAccount 

11 Fund. 

12 (c) CONFIDENTIALITY AND DISCLOSURE.— 

13 (1) IN GENERAL.—Except as otherwise author14 ized by Federal law, the USAccount Fund Board, 

15 the Executive Director, and any employee of the 

16 USAccount Fund Board shall not disclose informa17 tion with respect to the USAccount Fund or any ac18 count maintained in such Fund. 

19 (2) DISCLOSURE TO DESIGNEE OF BENE20 FICIARY.—The Executive Director may, subject to 

21 such requirements and conditions as he may pre22 scribe by regulations, disclose such information with 

23 respect to the USAccount of the beneficiary to such 

24 person or persons as the beneficiary may designate 

25 in a request for or consent to such disclosure, or to 


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1 any other person at the beneficiary’s request to the 

2 extent necessary to comply with a request for infor3 mation or assistance made by the beneficiary to such 

4 other person. 

5 SEC. 7. USACCOUNT FUND BOARD. 

6 (a) IN GENERAL.—There is established in the execu7 tive branch of the Government a USAccount Fund Board. 

8 (b) COMPOSITION, DUTIES, AND RESPONSIBIL9 ITIES.—Subject to the provisions of this Act, the following 

10 provisions shall apply with respect to the USAccount Fund 

11 Board in the same manner and to the same extent as such 

12 provisions relate to the Federal Retirement Thrift Invest13 ment Board: 

14 (1) Section 8472 of title 5, United States Code 

15 (relating to composition of Federal Retirement 

16 Thrift Investment Board). 

17 (2) Section 8474 of such title (relating to Exec18 utive Director). 

19 (3) Section 8475 of such title (relating to in20 vestment policies). 

21 (4) Section 8476 of such title (relating to ad22 ministrative provisions). 

23 SEC. 8. FIDUCIARY RESPONSIBILITIES. 

24 (a) IN GENERAL.—Under regulations of the Sec25 retary of Labor, the provisions of sections 8477 and 8478 


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1 of title 5, United States Code, shall apply in connection 

2 with the USAccount Fund and the accounts maintained 

3 in such Fund in the same manner and to the same extent 

4 as such provisions apply in connection with the Thrift Sav5 ings Fund and the accounts maintained in the Thrift Sav6 ings Fund. 

7 (b) INVESTIGATIVE AUTHORITY.—Any authority 

8 available to the Secretary of Labor under section 504 of 

9 the Employee Retirement Income Security Act of 1974 

10 (29 U.S.C. 1134) is hereby made available to the Sec11 retary of Labor, and any officer designated by the Sec12 retary of Labor, to determine whether any person has vio13 lated, or is about to violate, any provision applicable under 

14 subsection (a). 

15 (c) EXCULPATORY PROVISIONS; INSURANCE.— 

16 (1) IN GENERAL.—Any provision in an agree17 ment or instrument which purports to relieve a fidu18 ciary from responsibility or liability for any responsi19 bility, obligation, or duty under this Act shall be 

20 void. 

21 (2) INSURANCE.—Amounts in the USAccount 

22 Fund available for administrative expenses shall be 

23 available and may be used at the discretion of the 

24 Executive Director to purchase insurance to cover 

25 potential liability of persons who serve in a fiduciary 


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1 capacity with respect to the Fund and accounts 

2 maintained therein, without regard to whether a pol3 icy of insurance permits recourse by the insurer 

4 against the fiduciary in the case of a breach of a fi5 duciary obligation. 

6 SEC. 9. ACCOUNTS DISREGARDED IN DETERMINING ELIGI7 BILITY FOR FEDERAL BENEFITS. 

8 Amounts in any USAccount shall not be taken into 

9 account in determining any individual’s or household’s fi10 nancial eligibility for, or amount of, any benefit or service, 

11 paid for in whole or in part with Federal funds, including 

12 student financial aid. 

13 SEC. 10. REPORTS. 

14 (a) REPORTS TO CONGRESS.—The Executive Direc15 tor, in consultation with the Secretary, shall annually 

16 transmit a written report to the Congress. Such report 

17 shall include— 

18 (1) a detailed description of the status and op19 eration of the USAccount Fund and the manage20 ment of the USAccounts, and 

21 (2) a detailed accounting of the administrative 

22 expenses in carrying out this Act, including the ratio 

23 of such administrative expenses to the balance of the 

24 USAccount Fund and the methodology adopted by 


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1 the Executive Director for allocating such expenses 

2 among the USAccounts. 

3 (b) REPORTS TO ACCOUNT HOLDERS.—The 

4 USAccount Fund Board shall prescribe regulations under 

5 which each individual for whom a USAccount is main6 tained shall be furnished with an annual statement relat7 ing to the individual’s account, which shall include— 

8 (1) a statement of the balance of individual’s 

9 USAccount, 

10 (2) a projection of the account’s growth by the 

11 time the individual attains the age of 18, and 

12 (3) such other information as the Secretary 

13 deems relevant. 

14 SEC. 11. TAX PROVISIONS. 

15 (a) TAX TREATMENT OF USACCOUNTS.—Subchapter 

16 F of chapter 1 of the Internal Revenue Code of 1986 is 

17 amended by adding at the end the following new part: 

18 ‘‘PART IX—USACCOUNT FUND AND USACCOUNTS 

‘‘Sec. 530A. USAccount Fund and USAccounts. 

19 ‘‘SEC. 530A. USACCOUNT FUND AND USACCOUNTS. 

20 ‘‘(a) GENERAL RULE.—The USAccount Fund and 

21 USAccounts shall be exempt from taxation under this sub22 title. Notwithstanding the preceding sentence, a 

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1 tion 511 (relating to imposition of tax on unrelated busi2 ness income of charitable organizations). 

3 ‘‘(b) DEFINITIONS.—For purposes of this section, the 

4 terms ‘USAccount Fund’ and ‘USAccount’ have the mean5 ings given such terms by the USAccounts: Investing in 

6 America’s Future Act of 2015. 

7 ‘‘(c) TAX TREATMENT OF DISTRIBUTIONS.—Any 

8 amount paid or distributed out of a USAccount— 

9 ‘‘(1) which meets the distribution rules of the 

10 USAccounts: Investing in America’s Future Act of 

11 2015 shall not be includible in gross income, and 

12 ‘‘(2) which does not meet the distribution rules 

13 of section 4(e) of such Act shall be included in the 

14 gross income of the account holder.’’. 

15 (b) ENFORCEMENT PROVISIONS RELATING TO PRI16 VATE MANAGEMENT OF USACCOUNTS.— 

17 (1) EXCESS CONTRIBUTIONS.—Section 4973 of 

18 the Internal Revenue Code of 1986 is amended— 

19 (A) by striking ‘‘or’’ at the end of sub20 section (a)(4), by inserting ‘‘or’’ at the end of 

21 subsection (a)(5), and by inserting after sub22 section (a)(5) the following new paragraph: 

23 ‘‘(5) a USAccount subject to management 

24 under section 4(g) of the USAccounts: Investing in 

25 America’s Future Act of 2015,’’, and 


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1 (B) by adding at the end the following new 

2 subsection: 

3 ‘‘(h) EXCESS CONTRIBUTIONS TO PRIVATELY MAN4 AGED USACCOUNTS.—For purposes of this section, in the 

5 case of a USAccount subject to management under section 

6 4(g) of the USAccounts: Investing in America’s Future 

7 Act of 2015, the term ‘excess contributions’ means the 

8 sum of— 

9 ‘‘(1) the aggregate amount contributed for the 

10 taxable year to the account, and 

11 ‘‘(2) the amount determined under this sub12 section for the preceding taxable year, reduced by 

13 the sum of— 

14 ‘‘(A) the distributions out of the account, 

15 and 

16 ‘‘(B) the excess (if any) of— 

17 ‘‘(i) the maximum amount allowable 

18 as a contribution under section 4(c)(3)(C) 

19 of the USAccounts: Investing in America’s 

20 Future Act of 2015 for the taxable year, 

21 over 

22 ‘‘(ii) the amount contributed to the 

23 account for the taxable year.’’. 

24 (2) PROHIBITED TRANSACTIONS.—Section 4975 

25 of the Internal Revenue Code of 1986 is amended— 


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1 (A) by adding at the end of subsection (c) 

2 the following new paragraph: 

3 ‘‘(7) SPECIAL RULE FOR USACCOUNTS.—An in4 dividual for whose benefit a USAccount subject to 

5 management under section 4(g) of the USAccounts: 

6 Investing in America’s Future Act of 2015 shall be 

7 exempt from the tax imposed by this section with re8 spect to any transaction concerning such account 

9 (which would otherwise be taxable under this sec10 tion) if, with respect to such transaction, the ac11 count ceases to be a USAccount by reason of the ap12 plication of section 530A(c)(2) to such account.’’, 

13 and 

14 (B) in subsection (e)(1) by redesignating 

15 subparagraph (G) as subparagraph (H) and by 

16 inserting after subparagraph (F) the following 

17 new subparagraph: 

18 ‘‘(G) a USAccount subject to management 

19 under section 4(g) of the USAccounts: Invest20 ing in America’s Future Act of 2015,’’. 

21 (c) INCREASE IN CHILD TAX CREDIT.— 

22 (1) IN GENERAL.—Section 24 of the Internal 

23 Revenue Code of 1986 is amended by adding at the 

24 end the following: 


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1 ‘‘(g) USACCOUNT CONTRIBUTIONS.—For purposes 

2 of this section— 

3 ‘‘(1) IN GENERAL.—The amount allowed as a 

4 credit under subsection (a) shall be increased by the 

5 USAccount contribution amount. 

6 ‘‘(2) USACCOUNT CONTRIBUTION AMOUNT.— 

7 The term ‘USAccount contribution amount’ means 

8 with respect to each qualifying account holder the 

9 amount contributed by the taxpayer to the 

10 USAccount of the taxpayer for the taxable year 

11 which is taken into account under section 

12 4(d)(2)(B)(I) of the USAccounts: Investing in Amer13 ica’s Future Act of 2015. 

14 ‘‘(3) LIMITATION.—The amount under para15 graph (2) shall be reduced (but not below zero) 

16 under subsection (b)(1) in the same manner as the 

17 credit under subsection (a) is reduced under sub18 section (b)(1). 

19 ‘‘(4) AMOUNT FULLY REFUNDABLE.—The ag20 gregate credits allowed to the taxpayer under sub21 part C shall be increased by the amount of the in22 crease under this subsection and such amount— 

23 ‘‘(A) shall not be treated as a credit al24 lowed under this subpart, and 


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1 ‘‘(B) shall reduce the amount of credit oth2 erwise allowable under subsection (a) without 

3 regard to section 26(a).’’. 

4 (d) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2015. 

7 SEC. 12. EARNED INCOME TAX CREDIT OUTREACH. 

8 Section 32 of the Internal Revenue Code of 1986 is 

9 amended by adding at the end the following new sub10 section: 

11 ‘‘(n) EARNED INCOME TAX CREDIT OUTREACH.— 

12 ‘‘(1) IN GENERAL.—To the extent practicable 

13 and not otherwise precluded by section 6511, in the 

14 case of any taxpayer who, based on information 

15 available to the Secretary, did not claim, but may be 

16 allowed, a credit under subsection (a) for a pre17 ceding taxable year, the Secretary shall annually 

18 provide to each such taxpayer notice that such tax19 payer may be eligible to claim such credit. 

20 ‘‘(2) DETERMINATION OF CREDIT AND DE21 POSIT.—Not earlier than 60 days after providing no22 tice under paragraph (1) to a taxpayer with respect 

23 to a taxable year, if such taxpayer fails to claim the 

24 credit under this section for such taxable year, the 

25 Secretary shall determine the credit on behalf of the 


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1 taxpayer. Any refund attributable to such credit 

2 shall be— 

3 ‘‘(A) deposited in the USAccount of any 

4 dependents of the taxpayer (pro rata in the case 

5 of more than one USAccount), or 

6 ‘‘(B) in the case of a taxpayer with de7 pendents who do not have a USAccount or a 

8 taxpayer with no dependents, paid directly to 

9 the taxpayer. 

10 For purposes of this paragraph, the term 

11 ‘USAccount’ shall have the meaning given such term 

12 by section 4 of the USAccounts: Investing in Amer13 ica’s Future Act of 2015. The Secretary shall not 

14 collect any overpayment of the credit determined 

15 under this paragraph if such overpayment is attrib16 utable to an error of the Secretary.’’. 

Æ 


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