I 

113TH CONGRESS 

2D SESSION H. R. 5576 

To establish USAccounts, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 18, 2014 

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 2014’’. 

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. 

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) There is a strong link between savings and 

19 economic opportunity. Children in the poorest fifth 

20 of households who manage to move up the income 

21 ladder as adults have almost ten times the wealth of 

22 those who remain at the bottom. 


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1 (2) Even a small amount of children’s savings 

2 can have a significant impact on college success, a 

3 key driver of economic mobility. Low- and moderate4 income children with less than $500 saved for col5 lege are three times more likely to enroll in college 

6 and four times more likely to graduate than children 

7 with no savings. 

8 (3) Most working families in America lack sav9 ings and face financial insecurity as a result. 44 per10 cent of families are ‘‘liquid asset poor,’’ meaning 

11 they lack accessible savings to survive for three 

12 months at the Federal poverty level. 

13 (4) Families with children face additional bar14 riers to building savings. These families are more 

15 likely than childless households to live in asset pov16 erty. 

17 (5) The Great Recession has exacerbated finan18 cial insecurity for millions of American families. Be19 tween 2009 and 2011, the bottom 93 percent of 

20 households saw a drop in net worth, while the 

21 wealthiest 7 percent of households saw a significant 

22 increase in net worth. 

23 (6) Children’s savings accounts programs are 

24 evidence-based and have been tested throughout the 

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1 preneurship, and Downpayment (SEED) national 

2 demonstration project was established to evaluate 

3 the policy and practice of savings accounts for chil4 dren. SEED found that even very low-income par5 ents will save and invest for their children’s future 

6 if given the opportunity. 

7 (7) Since 2009, publicly funded, universal chil8 dren’s savings accounts programs have launched 

9 citywide in San Francisco, California, countywide in 

10 Cuyahoga County, Ohio, and statewide in Nevada 

11 and Maine. Additional children’s savings programs 

12 serving thousands of children have launched or are 

13 launching in Colorado, Hawaii, Illinois, Kansas, 

14 Michigan, Minnesota, Mississippi, New Mexico, New 

15 York, Pennsylvania, South Dakota, Texas, Wash16 ington, and Washington, DC. 

17 (8) In order to expand economic opportunity 

18 and spur economic growth, the United States should 

19 promote savings and investments for all Americans. 

20 SEC. 3. USACCOUNT FUND. 

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

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

23 ‘‘USAccount Fund’’. 

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

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


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

2 from investments of sums held in the Fund or reduced 

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

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

5 made from the Fund (including payments for administra6 tive expenses). 

7 (c) USE OF FUND.— 

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

9 Fund are appropriated and shall remain available 

10 without fiscal year limitation— 

11 (A) to make contributions to USAccounts, 

12 (B) to invest under section 6, 

13 (C) to make distributions in accordance 

14 with this Act, 

15 (D) to pay the administrative expenses of 

16 carrying out this Act, and 

17 (E) to purchase insurance as provided in 

18 section 8(c)(2). 

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

20 USAccount Fund shall not be appropriated for any 

21 purpose other than the purposes specified in this 

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

23 (d) TRANSFERS TO USACCOUNT FUND.—The Sec24 retary shall make transfers from the general fund of the 

25 Treasury to the USAccount Fund as follows: 


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1 (1) AUTOMATIC CONTRIBUTION.—Upon receipt 

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

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

4 the USAccount of the individual. 

5 (2) MATCHING CONTRIBUTIONS.—Upon receipt 

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

7 to an individual, the Secretary shall transfer the 

8 matching amount to the USAccount of the indi9 vidual. 

10 (e) PRIVATE CONTRIBUTIONS.—The Executive Di11 rector shall pay into the USAccount Fund such amounts 

12 as are contributed under section 4(c). 

13 (f) PROHIBITION ON USE OF PAYROLL TAXES TO

14 FUND USACCOUNTS.—The USAccount Fund and 

15 USAccounts are wholly separate and unique from the So16 cial Security system. No amount from any tax on employ17 ment may be contributed to the USAccount Fund or 

18 USAccounts. 

19 SEC. 4. USACCOUNTS. 

20 (a) IN GENERAL.— 

21 (1) ESTABLISHMENT.—The Executive Director 

22 shall establish in the USAccount Fund an account 

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

24 child certified under subsection (b). Each such ac25 count shall be identified to its account holder by 


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1 means of a unique personal identifier currently rec2 ognized by the Internal Revenue Service and shall 

3 remain in the USAccount Fund unless transferred 

4 to private management under subsection (g). 

5 (2) ACCOUNT BALANCE.—The balance in an ac6 count holder’s USAccount at any time is the excess 

7 of— 

8 (A) the sum of— 

9 (i) all deposits made into the 

10 USAccount Fund and credited to the ac11 count under paragraph (3), and 

12 (ii) the total amount of allocations 

13 made to and reductions made in the ac14 count pursuant to paragraph (4), over 

15 (B) the amounts paid out of the account 

16 with respect to such individual under subsection 

17 (d). 

18 (3) CREDITING OF CONTRIBUTIONS.—Pursuant 

19 to regulations which shall be prescribed by the Exec20 utive Director, the Executive Director shall credit to 

21 each USAccount the amounts paid into the 

22 USAccount Fund under section 3(d) which are at23 tributable to the account holder of such account. 

24 (4) ALLOCATION OF EARNINGS AND LOSSES.— 

25 The Executive Director shall allocate to each 


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1 USAccount an amount equal to the net earnings and 

2 net losses from each investment of sums in the 

3 USAccount Fund which are attributable, on a pro 

4 rata basis, to sums credited to such account, re5 duced by an appropriate share of the administrative 

6 expenses paid out of the net earnings, as determined 

7 by the Executive Director. 

8 (b) QUALIFYING CHILD.—For purposes of this Act— 

9 (1) IN GENERAL.—The term ‘‘qualifying child’’ 

10 has the meaning given such term by section 24(c) of 

11 the Internal Revenue Code of 1986. 

12 (2) CERTIFICATION OF ACCOUNT HOLDERS.— 

13 On the date on which a qualifying child is registered 

14 for a USAccount, the Secretary shall certify to the 

15 Executive Director the name of such qualifying 

16 child. 

17 (c) PRIVATE CONTRIBUTIONS.— 

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

19 accept cash contributions for payment into the 

20 USAccount Fund if such contribution is identified 

21 (in such manner as the Executive Director may re22 quire) with the account holder of a USAccount to 

23 whom it is to be credited at the time the contribu24 tion is made. 


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1 (2) ALTERNATIVE METHODS OF CONTRIBU2 TION.— 

3 (A) PAYROLL DEDUCTION.—Under regula4 tions prescribed by the Executive Director and 

5 at the election of the employer, contributions 

6 under paragraph (1) may be made through pay7 roll deductions. 

8 (B) TAX REFUNDS.—Under regulations 

9 prescribed by the Secretary, contributions under 

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

11 contribute all or a portion of the tax refund of 

12 the contributor. 

13 (3) ANNUAL LIMITATION.—No contribution 

14 may be accepted under paragraph (1)— 

15 (A) unless it is in cash, 

16 (B) after the date on which the USAccount 

17 holder ceases to be a qualifying child, and 

18 (C) except in the case of matching con19 tributions under subsection (d), if such con20 tribution would result in aggregate contribu21 tions for the calendar year exceeding $2,000. 

22 (d) GOVERNMENT MATCHING CONTRIBUTION.— 

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

24 Executive Director may require to establish the basis 

25 for certification, the Executive Director shall, with 


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1 respect to each private contribution to the account 

2 of an account holder which is made before such ac3 count holder attains age 18, certify to the Secretary 

4 the matching amount with respect to such contribu5 tion. 

6 (2) MATCHING AMOUNT.— 

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

8 subsection, the term ‘‘matching amount’’ 

9 means, an amount equal to 100 percent of pri10 vate contributions to the USAccount of an indi11 vidual during any calendar year beginning after 

12 the calendar year in which the USAccount is es13 tablished, not in excess of $500 for the calendar 

14 year. 

15 (B) PHASEOUT BASED ON EARNED IN16 COME CREDIT PHASEOUT.—The $500 in sub17 paragraph (A) shall be reduced (but not below 

18 zero) by an amount equal to the phaseout per19 centage of so much of the adjusted gross in20 come (or, if greater, the earned income) of the 

21 taxpayer for the taxable year as exceeds the 

22 phaseout amount. For purposes of this para23 graph, terms used in the preceding sentence 

24 which are used in section 32 of the Internal 


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1 Revenue Code of 1986 shall have the meanings 

2 given such terms by such section 32. 

3 (3) PRIVATE CONTRIBUTION.—For purposes of 

4 this subsection, the term ‘‘private contribution’’ 

5 means a contribution accepted under subsection (c). 

6 (e) DISTRIBUTIONS.— 

7 (1) IN GENERAL.—No amount may be distrib8 uted from a USAccount before the date on which the 

9 account holder attains the age of 18. 

10 (2) HIGHER EDUCATION EXPENSES.—Para11 graph (1) shall not apply to amounts paid for quali12 fied tuition and related expenses (as defined in sec13 tion 25A(f)(1)) of the account holder if the account 

14 holder is an eligible student (as defined in section 

15 25A(b)(3)) with respect to such expenses. 

16 (3) ROLLOVER.—Distributions from a 

17 USAccount after the date on which the account 

18 holder attains the age of 18 which, within 60 days 

19 of such distribution, are transferred to an individual 

20 retirement plan (as defined in section 7701(a)(37) of 

21 the Internal Revenue Code of 1986) of the account 

22 holder shall be treated as a rollover contribution 

23 which meets the requirements of section 408(d)(3) 

24 of such Code. 

25 (4) ACCOUNT TERMINATION.— 


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1 (A) IN GENERAL.—On the date on which 

2 the account holder attains age 19, the account 

3 shall cease to be treated as a USAccount and 

4 any remaining funds in the account shall be 

5 distributed to the account holder’s retirement 

6 savings vehicle established pursuant to the 

7 Presidential Memorandum on Retirement Sav8 ings Security issued January 28, 2014. 

9 (B) SPECIAL RULE RELATING TO MYIRA.— 

10 Amounts transferred to a savings vehicle under 

11 subparagraph (A) may be distributed from such 

12 vehicles during the 10-year period beginning on 

13 the date of such transfer without any penalty 

14 under the Internal Revenue Code of 1986. 

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

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

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

18 account shall be exercised or performed by the legal guard19 ian of such account holder. 

20 (g) PRIVATE MANAGEMENT.— 

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

22 USAccount may elect, under regulations prescribed 

23 by the Secretary, to transfer the USAccount to a 

24 trustee who meets the requirements of paragraph 

25 (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 cap on its fees and costs, 

12 as determined by the Treasury, for the manage13 ment 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 2015, the dollar amounts under secVerDate Sep 11 2014 04:05 Sep 26, 2014 Jkt 039200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H5576.IH H5576

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1 tions 3(d)(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 2014’’ for 

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

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

8 clause (i) 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 

8 USAccount Fund Board shall establish a default invest9 ment program under which, in a manner similar to a 

10 lifecycle investment program, sums in each USAccount are 

11 allocated to investment funds in the USAccount Fund 

12 based on the amount of time before the account holder 

13 attains the age of 18. Each account holder of a 

14 USAccount shall be enrolled in such program unless such 

15 account holder, in such form and manner as prescribed 

16 by the Executive Director, elects otherwise. 

17 (b) OTHER RULES.— 

18 (1) IN GENERAL.—Under regulations which 

19 shall be prescribed by the Executive Director, and 

20 subject to the provisions of this Act, the following 

21 provisions shall apply with respect to the USAccount 

22 Fund and accounts maintained in such Fund in the 

23 same manner and to the same extent as such provi24 sions relate to the Thrift Savings Fund and the ac25 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 and or any 

24 account 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.— 

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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 The Executive Director, in consultation with the Sec22 retary, shall annually transmit a written report to the 

23 Congress. Such report 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 SEC. 11. TAX PROVISIONS. 

11 (a) TAX TREATMENT OF USACCOUNTS.—Subchapter 

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

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

14 ‘‘PART IX—USACCOUNT FUND AND USACCOUNTS 

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

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

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

17 USAccounts shall be exempt from taxation under this sub18 title. Notwithstanding the preceding sentence, a 

19 USAccount shall be subject to the taxes imposed by sec20 tion 511 (relating to imposition of tax on unrelated busi21 ness income of charitable organizations). 

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

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1 ings given such terms by the USAccounts: Investing in 

2 America’s Future Act of 2014. 

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

4 amount paid or distributed out of a USAccount— 

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

6 USAccounts: Investing in America’s Future Act of 

7 2014 shall not be includible in gross income, and 

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

9 of section 4(d) of such Act shall be included in the 

10 gross income of the account holder.’’. 

11 (b) ENFORCEMENT PROVISIONS RELATING TO PRI12 VATE MANAGEMENT OF USACCOUNTS.— 

13 (1) EXCESS CONTRIBUTIONS.—Section 4973 of 

14 the Internal Revenue Code of 1986 is amended— 

15 (A) by striking ‘‘or’’ at the end of sub16 section (a)(4), by inserting ‘‘or’’ at the end of 

17 subsection (a)(5), and by inserting after sub18 section (a)(5) the following new paragraph: 

19 ‘‘(5) a USAccount subject to management 

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

21 America’s Future Act of 2014,’’, and 

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

23 subsection: 

24 ‘‘(h) EXCESS CONTRIBUTIONS TO PRIVATELY MAN25 AGED USACCOUNTS.—For purposes of this section, in the 


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1 case of a USAccount subject to management under section 

2 4(g) of the USAccounts: Investing in America’s Future 

3 Act of 2014, the term ‘excess contributions’ means the 

4 sum of— 

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

6 taxable year to the account, and 

7 ‘‘(2) the amount determined under this sub8 section for the preceding taxable year, reduced by 

9 the sum of— 

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

11 and 

12 ‘‘(B) the excess (if any) of— 

13 ‘‘(i) the maximum amount allowable 

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

15 of the USAccounts: Investing in America’s 

16 Future Act of 2014 for the taxable year, 

17 over 

18 ‘‘(ii) the amount contributed to the 

19 account for the taxable year.’’. 

20 (2) PROHIBITED TRANSACTIONS.—Section 4975 

21 of the Internal Revenue Code of 1986 is amended— 

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

23 the following new paragraph: 

24 ‘‘(7) SPECIAL RULE FOR USACCOUNTS.—An in25 dividual for whose benefit a USAccount subject to 


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

2 Investing in America’s Future Act of 2014 shall be 

3 exempt from the tax imposed by this section with re4 spect to any transaction concerning such account 

5 (which would otherwise be taxable under this sec6 tion) if, with respect to such transaction, the ac7 count ceases to be a USAccount by reason of the ap8 plication of section 530A(c)(2) to such account.’’, 

9 and 

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

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

12 inserting after subparagraph (F) the following 

13 new subparagraph: 

14 ‘‘(G) a USAccount subject to management 

15 under section 4(g) of the USAccounts: Invest16 ing in America’s Future Act of 2014,’’. 

17 (c) INCREASE IN CHILD TAX CREDIT.— 

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

19 Revenue Code of 1986 is amended by adding at the 

20 end the following: 

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

22 of this section— 

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

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

25 USAccount contribution amount. 


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•HR 5576 IH

1 ‘‘(2) USACCOUNT CONTRIBUTION AMOUNT.— 

2 The term ‘USAccount contribution amount’ means 

3 with respect to each qualifying child the amount 

4 contributed by the taxpayer to the USAccount of the 

5 taxpayer for the taxable year which is taken into ac6 count under section 4(d)(2)(B)(i) of the 

7 USAccounts: Investing in America’s Future Act of 

8 2014. 

9 ‘‘(3) LIMITATION.—The amount under para10 graph (2) shall be reduced (but not below zero) 

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

12 credit under subsection (a) is reduced under sub13 section (b)(1). 

14 ‘‘(4) AMOUNT FULLY REFUNDABLE.—The ag15 gregate credits allowed to the taxpayer under sub16 part C shall be increased by the amount of the in17 crease under this subsection and such amount— 

18 ‘‘(A) shall not be treated as a credit al19 lowed under this subpart, and 

20 ‘‘(B) shall reduce the amount of credit oth21 erwise allowable under subsection (a) without 

22 regard to section 26(a).’’. 


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•HR 5576 IH

1 (2) EFFECTIVE DATE.—The amendment made 

2 by subsection (a) shall apply to taxable years begin3 ning after December 31, 2014. 

Æ 


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