I 

115TH CONGRESS 

2D SESSION H. R. 5118 

To establish USAccounts, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 27, 2018 

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 2018’’. 

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 23:42 Mar 02, 2018 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5118.IH H5118

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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. 


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1 (10) Since the San Francisco program has been 

2 in existence, families have saved $5,200,000, helping 

3 build assets for participating families. 

4 (11) In order to expand economic opportunity 

5 and spur economic growth, the United States should 

6 promote savings and investments for all Americans. 

7 SEC. 3. USACCOUNT FUND. 

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

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

10 ‘‘USAccount Fund’’. 

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

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

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

14 from investments of sums held in the Fund or reduced 

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

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

17 made from the Fund (including payments for administra18 tive expenses). 

19 (c) USE OF FUND.— 

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

21 Fund are appropriated and shall remain available 

22 without fiscal year limitation— 

23 (A) to make contributions to USAccounts, 

24 (B) to invest under section 6, 


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1 (C) to make distributions in accordance 

2 with this Act, 

3 (D) to pay the administrative expenses of 

4 carrying out this Act, and 

5 (E) to purchase insurance as provided in 

6 section 8(c)(2). 

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

8 USAccount Fund shall not be appropriated for any 

9 purpose other than the purposes specified in this 

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

11 (d) TRANSFERS TO USACCOUNT FUND.—The Sec12 retary shall make transfers from the general fund of the 

13 Treasury to the USAccount Fund as follows: 

14 (1) AUTOMATIC CONTRIBUTION.—Upon receipt 

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

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

17 the USAccount of the individual. 

18 (2) MATCHING CONTRIBUTIONS.—Upon receipt 

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

20 to an individual, the Secretary shall transfer the 

21 matching amount to the USAccount of the indi22 vidual. 

23 (e) PRIVATE CONTRIBUTIONS.—The Executive Di24 rector shall pay into the USAccount Fund such amounts 

25 as are contributed under section 4(c). 


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1 (f) PROHIBITION ON USE OF PAYROLL TAXES TO

2 FUND USACCOUNTS.—The USAccount Fund and 

3 USAccounts are wholly separate and unique from the So4 cial Security system. No amount from any tax on employ5 ment may be contributed to the USAccount Fund or 

6 USAccounts. 

7 SEC. 4. USACCOUNTS. 

8 (a) IN GENERAL.— 

9 (1) ESTABLISHMENT.—The Executive Director 

10 shall establish in the USAccount Fund an account 

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

12 account holder certified under subsection (b). Each 

13 such account shall be identified to its account holder 

14 by means of a unique personal identifier currently 

15 recognized by the Internal Revenue Service and shall 

16 remain in the USAccount Fund unless transferred 

17 to private management under subsection (g). 

18 (2) ACCOUNT BALANCE.—The balance in an ac19 count holder’s USAccount at any time is the excess 

20 of— 

21 (A) the sum of— 

22 (i) all deposits made into the 

23 USAccount Fund and credited to the ac24 count under paragraph (3), and 


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1 (ii) the total amount of allocations 

2 made to and reductions made in the ac3 count pursuant to paragraph (4), over 

4 (B) the amounts paid out of the account 

5 with respect to such individual under subsection 

6 (d). 

7 (3) CREDITING OF CONTRIBUTIONS.—Pursuant 

8 to regulations which shall be prescribed by the Exec9 utive Director, the Executive Director shall credit to 

10 each USAccount the amounts paid into the 

11 USAccount Fund under section 3(d) which are at12 tributable to the account holder of such account. 

13 (4) ALLOCATION OF EARNINGS AND LOSSES.— 

14 The Executive Director shall allocate to each 

15 USAccount an amount equal to the net earnings and 

16 net losses from each investment of sums in the 

17 USAccount Fund which are attributable, on a pro 

18 rata basis, to sums credited to such account, re19 duced by an appropriate share of the administrative 

20 expenses paid out of the net earnings, as determined 

21 by the Executive Director. 

22 (b) QUALIFYING ACCOUNT HOLDER.—For purposes 

23 of this Act— 

24 (1) IN GENERAL.—The term ‘‘qualifying ac25 count holder’’ means any individual who— 


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1 (A) was born after December 31, 2018, 

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

3 years, and 

4 (C) has a valid, unique, Federal Govern5 ment issued identification number recognized by 

6 the Internal Revenue Service. 

7 (2) CERTIFICATION OF ACCOUNT HOLDERS.— 

8 On the date on which a qualifying account holder is 

9 registered for a USAccount, the Secretary shall cer10 tify to the Executive Director the name of such 

11 qualifying account holder. 

12 (c) PRIVATE CONTRIBUTIONS.— 

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

14 accept cash contributions from any person (including 

15 churches, charities, private foundations, businesses, 

16 or civic leagues) for payment into the USAccount 

17 Fund if such contribution is identified (in such man18 ner as the Executive Director may require) with the 

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

20 credited at the time the contribution is made. 

21 (2) ALTERNATIVE METHODS OF CONTRIBU22 TION.— 

23 (A) PAYROLL DEDUCTION.—Under regula24 tions prescribed by the Executive Director and 

25 at the election of the employer, contributions 


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1 under paragraph (1) may be made through pay2 roll deductions. 

3 (B) TAX REFUNDS.—Under regulations 

4 prescribed by the Secretary, contributions under 

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

6 contribute all or a portion of the tax refund of 

7 the contributor. 

8 (3) ANNUAL LIMITATION.—No contribution 

9 may be accepted under paragraph (1)— 

10 (A) unless it is in cash, 

11 (B) after the date on which the USAccount 

12 holder ceases to be a qualifying account holder, 

13 and 

14 (C) except in the case of matching con15 tributions under subsection (d), if such con16 tribution would result in aggregate contribu17 tions for the calendar year exceeding $2,000. 

18 (d) GOVERNMENT MATCHING CONTRIBUTION.— 

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

20 Executive Director may require to establish the basis 

21 for certification, the Executive Director shall, with 

22 respect to each private contribution to the account 

23 of an account holder which is made before such ac24 count holder attains age 18, certify to the Secretary 


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1 the matching amount with respect to such contribu2 tion. 

3 (2) MATCHING AMOUNT.— 

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

5 subsection, the term ‘‘matching amount’’ 

6 means, an amount equal to 100 percent of con7 tributions made by the account holder (or a 

8 legal guardian of the account holder) to the 

9 USAccount of an individual during any cal10 endar year beginning after the calendar year in 

11 which the USAccount is established, not in ex12 cess of $500 for the calendar year. 

13 (B) PHASEOUT BASED ON EARNED IN14 COME CREDIT PHASEOUT.—The $500 amount 

15 in subparagraph (A) shall be zero if the ad16 justed gross income (or, if greater, the earned 

17 income) of the taxpayer for the taxable year as 

18 exceeds the phaseout amount. For purposes of 

19 this paragraph, terms used in the preceding 

20 sentence which are used in section 32 of the In21 ternal Revenue Code of 1986 shall have the 

22 meanings given such terms by such section 32. 

23 (e) DISTRIBUTIONS.— 


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1 (1) IN GENERAL.—No amount may be distrib2 uted from a USAccount before the date on which the 

3 account holder attains the age of 18. 

4 (2) HIGHER EDUCATION EXPENSES.—Para5 graph (1) shall not apply to amounts paid for quali6 fied tuition and related expenses (as defined in sec7 tion 25A(f)(1) of the Internal Revenue Code of 

8 1986) of the account holder if the account holder is 

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

10 of such Code) with respect to such expenses. 

11 (3) ROLLOVER.— 

12 (A) IN GENERAL.—Not later than 180 

13 days after the date on which the account holder 

14 attains the age of 18, the balance of such indi15 vidual’s account shall be transferred to a 

16 USAccount IRA established on behalf of the in17 dividual and shall be treated as a rollover con18 tribution which meets the requirements of sec19 tion 408(d)(3) of such Code. 

20 (B) USACCOUNT IRA.— 

21 (i) IN GENERAL.—Except as provided 

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

23 is an individual retirement account (as de24 fined in section 7701(a)(37) of such Code) 

25 which is established by the Executive DiVerDate Sep 11 2014 23:42 Mar 02, 2018 Jkt 079200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H5118.IH H5118

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1 rector and designated at the time of the 

2 establishment of the account as a 

3 USAccount IRA. 

4 (ii) DISTRIBUTIONS.—No amount 

5 may be distributed from a USAccount IRA 

6 to an account holder or other beneficiary 

7 earlier than the account holder attains the 

age of 591 8 ⁄2, except— 

9 (I) distributions which are made 

10 to a beneficiary (or to the estate of 

11 the account holder) upon death of the 

12 account holder, 

13 (II) distributions described in 

14 paragraph (2), 

15 (III) qualified first-time home16 buyer distributions (as defined in sec17 tion 72(t)(8) of such Code), 

18 (IV) distributions for qualified 

19 medical expenses, 

20 (V) any distribution which would 

21 not be includible in gross income if 

22 made from a qualified ABLE program 

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

24 Code) with respect to the account 

25 holder or a member of the family (as 


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

2 account holder, 

3 (VI) any distribution used to pre4 vent foreclosure on the principal resi5 dence of the account holder, and 

6 (VII) any distribution used to 

7 start a small business. 

8 Any distribution described in subclauses 

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

10 gross income. 

11 (iii) NO ROLLOVERS FROM

12 USACCOUNT IRA.—No amounts may be 

13 rolled over from a USAccount IRA. 

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

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

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

17 account shall be exercised or performed by the legal guard18 ian of such account holder. 

19 (g) PRIVATE MANAGEMENT.— 

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

21 USAccount may elect, under regulations prescribed 

22 by the Secretary, to transfer the USAccount to a 

23 trustee who meets the requirements of paragraph 

24 (2). 


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1 (2) TRUSTEE REQUIREMENTS.—A trustee 

2 meets the requirements of this paragraph if the 

3 trustee— 

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

5 408(n)) or another person who demonstrates to 

6 the satisfaction of the Secretary that the man7 ner in which that person will administer the 

8 USAccount will be consistent with the require9 ments of this Act or who has so demonstrated 

10 with respect to any USAccount, 

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

12 and costs, as determined by the Treasury, for 

13 the management of USAccounts, 

14 (C) provides an investment fund that 

15 maximizes growth over time while minimizing 

16 risk, and 

17 (D) provides the safeguards with respect to 

18 USAccounts required by the Secretary. 

19 (3) ADDITIONAL REQUIREMENTS.—For pur20 poses of this subsection, rules similar to the rules of 

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

22 Internal Revenue Code of 1986 shall apply. 

23 (h) ADJUSTMENT FOR INFLATION.— 

24 (1) IN GENERAL.—For each calendar year be25 ginning after 2019, the dollar amounts under secVerDate Sep 11 2014 23:42 Mar 02, 2018 Jkt 079200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H5118.IH H5118

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1 tions 3(e)(1), 4(c)(3)(C), and 4(d)(2) shall each be 

2 increased by such dollar amount multiplied by the 

3 cost-of-living adjustment determined under section 

4 1(f)(3) of the Internal Revenue Code of 1986 deter5 mined by substituting ‘‘calendar year 2018’’ for 

6 ‘‘calendar year 2016’’ in subparagraph (B) thereof. 

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

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

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

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

11 DECEASED INDIVIDUALS. 

12 (a) ASSIGNMENT AND ALIENATION.—Under regula13 tions which shall be prescribed by the Executive Director, 

14 rules relating to assignment and alienation applicable 

15 under chapter 84 of title 5, United States Code, with re16 spect to amounts held in accounts in the Thrift Savings 

17 Fund shall apply with respect to amounts held in 

18 USAccounts in the USAccount Fund. 

19 (b) TREATMENT OF ACCOUNTS OF DECEASED INDI20 VIDUALS.—In the case of a deceased account holder of a 

21 USAccount which has an account balance greater than 

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

23 death, the Executive Director shall close the account and 

24 shall transfer the balance in such account to the duly ap25 pointed legal representative of the estate of the deceased 


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

2 the person or persons determined to be entitled thereto 

3 under the laws of the domicile of the deceased account 

4 holder. 

5 SEC. 6. RULES GOVERNING USACCOUNTS RELATING TO IN6 VESTMENT, ACCOUNTING, AND REPORTING. 

7 (a) DEFAULT INVESTMENT PROGRAM.—The Sec8 retary shall establish, and the USAccount Fund Board 

9 shall invest in, a retirement savings bond that earns inter10 est at the same annual percentage rate as securities issued 

11 to the Government Securities Investment Fund in the 

12 Thrift Savings Plan for Federal employees as determined 

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

and shall be compounded daily at 1 14 ⁄260 of the annual per15 centage rate. 

16 (b) OTHER RULES.— 

17 (1) IN GENERAL.—Under regulations which 

18 shall be prescribed by the Executive Director, and 

19 subject to the provisions of this Act, the following 

20 provisions shall apply with respect to the USAccount 

21 Fund and accounts maintained in such Fund in the 

22 same manner and to the same extent as such provi23 sions relate to the Thrift Savings Fund and the ac24 counts maintained in the Thrift Savings Fund: 


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

2 Code (relating to investment of the Thrift Sav3 ings Fund). 

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

5 to engagement of independent qualified public 

6 accountant). 

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

8 to periodic statements and summary descrip9 tions of investment options). 

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

11 to assumption of risk). 

12 (2) APPLICATION RULES.—For purposes of 

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

14 8439 to an employee, Member, former employee, or 

15 former Member shall be deemed references to an ac16 count holder of a USAccount in the USAccount 

17 Fund. 

18 (c) CONFIDENTIALITY AND DISCLOSURE.— 

19 (1) IN GENERAL.—Except as otherwise author20 ized by Federal law, the USAccount Fund Board, 

21 the Executive Director, and any employee of the 

22 USAccount Fund Board shall not disclose informa23 tion with respect to the USAccount Fund or any ac24 count maintained in such Fund. 


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1 (2) DISCLOSURE TO DESIGNEE OF BENE2 FICIARY.—The Executive Director may, subject to 

3 such requirements and conditions as he may pre4 scribe by regulations, disclose such information with 

5 respect to the USAccount of the beneficiary to such 

6 person or persons as the beneficiary may designate 

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

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

9 extent necessary to comply with a request for infor10 mation or assistance made by the beneficiary to such 

11 other person. 

12 SEC. 7. USACCOUNT FUND BOARD. 

13 (a) IN GENERAL.—There is established in the execu14 tive branch of the Government a USAccount Fund Board. 

15 (b) COMPOSITION, DUTIES, AND RESPONSIBIL16 ITIES.—Subject to the provisions of this Act, the following 

17 provisions shall apply with respect to the USAccount Fund 

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

19 provisions relate to the Federal Retirement Thrift Invest20 ment Board: 

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

22 (relating to composition of Federal Retirement 

23 Thrift Investment Board). 

24 (2) Section 8474 of such title (relating to Exec25 utive Director). 


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1 (3) Section 8475 of such title (relating to in2 vestment policies). 

3 (4) Section 8476 of such title (relating to ad4 ministrative provisions). 

5 SEC. 8. FIDUCIARY RESPONSIBILITIES. 

6 (a) IN GENERAL.—Under regulations of the Sec7 retary of Labor, the provisions of sections 8477 and 8478 

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

9 with the USAccount Fund and the accounts maintained 

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

11 as such provisions apply in connection with the Thrift Sav12 ings Fund and the accounts maintained in the Thrift Sav13 ings Fund. 

14 (b) INVESTIGATIVE AUTHORITY.—Any authority 

15 available to the Secretary of Labor under section 504 of 

16 the Employee Retirement Income Security Act of 1974 

17 (29 U.S.C. 1134) is hereby made available to the Sec18 retary of Labor, and any officer designated by the Sec19 retary of Labor, to determine whether any person has vio20 lated, or is about to violate, any provision applicable under 

21 subsection (a). 

22 (c) EXCULPATORY PROVISIONS; INSURANCE.— 

23 (1) IN GENERAL.—Any provision in an agree24 ment or instrument which purports to relieve a fidu25 ciary from responsibility or liability for any responsiVerDate Sep 11 2014 23:42 Mar 02, 2018 Jkt 079200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H5118.IH H5118

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1 bility, obligation, or duty under this Act shall be 

2 void. 

3 (2) INSURANCE.—Amounts in the USAccount 

4 Fund available for administrative expenses shall be 

5 available and may be used at the discretion of the 

6 Executive Director to purchase insurance to cover 

7 potential liability of persons who serve in a fiduciary 

8 capacity with respect to the Fund and accounts 

9 maintained therein, without regard to whether a pol10 icy of insurance permits recourse by the insurer 

11 against the fiduciary in the case of a breach of a fi12 duciary obligation. 

13 SEC. 9. ACCOUNTS DISREGARDED IN DETERMINING ELIGI14 BILITY FOR FEDERAL BENEFITS. 

15 Amounts in any USAccount shall not be taken into 

16 account in determining any individual’s or household’s fi17 nancial eligibility for, or amount of, any benefit or service, 

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

19 student financial aid. 

20 SEC. 10. REPORTS. 

21 (a) REPORTS TO CONGRESS.—The Executive Direc22 tor, in consultation with the Secretary, shall annually 

23 transmit a written report to the Congress. Such report 

24 shall include— 


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1 (1) a detailed description of the status and op2 eration of the USAccount Fund and the manage3 ment of the USAccounts, and 

4 (2) a detailed accounting of the administrative 

5 expenses in carrying out this Act, including the ratio 

6 of such administrative expenses to the balance of the 

7 USAccount Fund and the methodology adopted by 

8 the Executive Director for allocating such expenses 

9 among the USAccounts. 

10 (b) REPORTS TO ACCOUNT HOLDERS.—The 

11 USAccount Fund Board shall prescribe regulations under 

12 which each individual for whom a USAccount is main13 tained shall be furnished with an annual statement relat14 ing to the individual’s account, which shall include— 

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

16 USAccount, 

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

18 time the individual attains the age of 18, and 

19 (3) such other information as the Secretary 

20 deems relevant. 

21 SEC. 11. TAX PROVISIONS. 

22 (a) TAX TREATMENT OF USACCOUNTS.—Subchapter 

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

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


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1 ‘‘PART IX—USACCOUNT FUND AND USACCOUNTS 

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

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

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

4 USAccounts shall be exempt from taxation under this sub5 title. Notwithstanding the preceding sentence, a 

6 USAccount shall be subject to the taxes imposed by sec7 tion 511 (relating to imposition of tax on unrelated busi8 ness income of charitable organizations). 

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

10 terms ‘USAccount Fund’ and ‘USAccount’ have the mean11 ings given such terms by the USAccounts: Investing in 

12 America’s Future Act of 2018. 

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

14 amount paid or distributed out of a USAccount— 

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

16 USAccounts: Investing in America’s Future Act of 

17 2018 shall not be includible in gross income, and 

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

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

20 gross income of the account holder.’’. 

21 (b) ENFORCEMENT PROVISIONS RELATING TO PRI22 VATE MANAGEMENT OF USACCOUNTS.— 

23 (1) EXCESS CONTRIBUTIONS.—Section 4973 of 

24 the Internal Revenue Code of 1986 is amended— 


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1 (A) by striking ‘‘or’’ at the end of sub2 section (a)(4), by inserting ‘‘or’’ at the end of 

3 subsection (a)(5), and by inserting after sub4 section (a)(5) the following new paragraph: 

5 ‘‘(5) a USAccount subject to management 

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

7 America’s Future Act of 2018,’’, and 

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

9 subsection: 

10 ‘‘(h) EXCESS CONTRIBUTIONS TO PRIVATELY MAN11 AGED USACCOUNTS.—For purposes of this section, in the 

12 case of a USAccount subject to management under section 

13 4(g) of the USAccounts: Investing in America’s Future 

14 Act of 2018, the term ‘excess contributions’ means the 

15 sum of— 

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

17 taxable year to the account, and 

18 ‘‘(2) the amount determined under this sub19 section for the preceding taxable year, reduced by 

20 the sum of— 

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

22 and 

23 ‘‘(B) the excess (if any) of— 

24 ‘‘(i) the maximum amount allowable 

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


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1 of the USAccounts: Investing in America’s 

2 Future Act of 2018 for the taxable year, 

3 over 

4 ‘‘(ii) the amount contributed to the 

5 account for the taxable year.’’. 

6 (2) PROHIBITED TRANSACTIONS.—Section 4975 

7 of the Internal Revenue Code of 1986 is amended— 

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

9 the following new paragraph: 

10 ‘‘(7) SPECIAL RULE FOR USACCOUNTS.—An in11 dividual for whose benefit a USAccount subject to 

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

13 Investing in America’s Future Act of 2018 shall be 

14 exempt from the tax imposed by this section with re15 spect to any transaction concerning such account 

16 (which would otherwise be taxable under this sec17 tion) if, with respect to such transaction, the ac18 count ceases to be a USAccount by reason of the ap19 plication of section 530A(c)(2) to such account.’’, 

20 and 

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

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

23 inserting after subparagraph (F) the following 

24 new subparagraph: 


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•HR 5118 IH

1 ‘‘(G) a USAccount subject to management 

2 under section 4(g) of the USAccounts: Invest3 ing in America’s Future Act of 2018,’’. 

4 (c) INCREASE IN CHILD TAX CREDIT.— 

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

6 Revenue Code of 1986 is amended by adding at the 

7 end the following: 

8 ‘‘(i) USACCOUNT CONTRIBUTIONS.—For purposes of 

9 this section— 

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

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

12 USAccount contribution amount. 

13 ‘‘(2) USACCOUNT CONTRIBUTION AMOUNT.— 

14 The term ‘USAccount contribution amount’ means 

15 with respect to each qualifying account holder the 

16 amount contributed by the taxpayer to the 

17 USAccount of the taxpayer for the taxable year 

18 which is taken into account under section 

19 4(d)(2)(B)(I) of the USAccounts: Investing in Amer20 ica’s Future Act of 2018. 

21 ‘‘(3) LIMITATION.—The amount under para22 graph (2) shall be reduced (but not below zero) 

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

24 credit under subsection (a) is reduced under sub25 section (b)(1). 


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•HR 5118 IH

1 ‘‘(4) AMOUNT FULLY REFUNDABLE.—The ag2 gregate credits allowed to the taxpayer under sub3 part C shall be increased by the amount of the in4 crease under this subsection and such amount— 

5 ‘‘(A) shall not be treated as a credit al6 lowed under this subpart, and 

7 ‘‘(B) shall reduce the amount of credit oth8 erwise allowable under subsection (a) without 

9 regard to section 26(a).’’. 

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2018. 

13 SEC. 12. EARNED INCOME TAX CREDIT OUTREACH. 

14 Section 32 of the Internal Revenue Code of 1986 is 

15 amended by adding at the end the following new sub16 section: 

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

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

19 and not otherwise precluded by section 6511, in the 

20 case of any taxpayer who, based on information 

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

22 allowed, a credit under subsection (a) for a pre23 ceding taxable year, the Secretary shall annually 

24 provide to each such taxpayer notice that such tax25 payer may be eligible to claim such credit. 


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1 ‘‘(2) DETERMINATION OF CREDIT AND DE2 POSIT.—Not earlier than 60 days after providing no3 tice under paragraph (1) to a taxpayer with respect 

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

5 credit under this section for such taxable year, the 

6 Secretary shall determine the credit on behalf of the 

7 taxpayer. Any refund attributable to such credit 

8 shall be— 

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

10 dependents of the taxpayer (pro rata in the case 

11 of more than one USAccount), or 

12 ‘‘(B) in the case of a taxpayer with de13 pendents who do not have a USAccount or a 

14 taxpayer with no dependents, paid directly to 

15 the taxpayer. 

16 For purposes of this paragraph, the term 

17 ‘USAccount’ shall have the meaning given such term 

18 by section 4 of the USAccounts: Investing in Amer19 ica’s Future Act of 2018. The Secretary shall not 

20 collect any overpayment of the credit determined 

21 under this paragraph if such overpayment is attrib22 utable to an error of the Secretary.’’. 

Æ 


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