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‘‘(5) ROLLOVER CONTRIBUTION.—An amount is
described in this paragraph as a rollover contribu-
tion if it meets the requirements of subparagraphs
(A) and (B).
‘‘(A) IN
GENERAL.—Paragraph (1) shall
not apply to any amount distributed from a
senior citizen real property tax account to the
account beneficiary to the extent the amount
received is paid into a senior citizen real prop-
erty tax account for the benefit of such bene-
ficiary not later than the 60th day after the day
on which the beneficiary receives the payment
or distribution.
‘‘(B) LIMITATION.—This paragraph shall
not apply to any amount described in subpara-
graph (A) received by an individual from a sen-
ior citizen real property tax account if, at any
time during the 1-year period ending on the day
of such receipt, such individual received any
other amount described in subparagraph (A)
from a senior citizen real property tax account
which was not includible in the individual’s
gross income because of the application of this
paragraph.
‘‘(f) SPECIAL RULES.—
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‘‘(1) MARRIED
INDIVIDUALS.—The maximum
deduction under subsection (b) shall be computed
separately for each individual.
‘‘(2) TIME
WHEN
CONTRIBUTIONS
DEEMED
MADE.—For purposes of this section, a taxpayer
shall be deemed to have made a contribution to a
senior citizen real property tax account on the last
day of the preceding taxable year if the contribution
is made on account of such taxable year and is made
not later than the time prescribed by law for filing
the return for such taxable year (not including ex-
tensions thereof).
‘‘(g) REPORTS.—The Secretary may require the
trustee of a senior citizen real property tax account to
make such reports regarding such account to the Sec-
retary and to the account beneficiary with respect to con-
tributions, distributions, and such other matters as the
Secretary determines appropriate. The reports required by
this subsection shall be filed at such time and in such a
manner and furnished to such individuals at such time and
in such manner as may be required by the Secretary.’’.
(b) DEDUCTION ALLOWED WHETHER OR NOT TAX-
PAYER ITEMIZES OTHER DEDUCTIONS.—Subsection (a)
of section 62 of such Code, as amended by section 2, is
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amended by inserting after paragraph (18) the following
new paragraph:
‘‘(19) SENIOR
CITIZEN
REAL
PROPERTY
TAX
ACCOUNTS.—The deduction allowed by section
222.’’.
(c) TAX ON PROHIBITED TRANSACTIONS.—
(1) IN
GENERAL.—Paragraph (1) of section
4975(e) of such Code (relating to prohibited trans-
actions) is amended by redesignating subparagraphs
(E) and (F) as subparagraphs (F) and (G), respec-
tively, and by inserting after subparagraph (D) the
following new subparagraph:
‘‘(E) a senior citizen real property tax ac-
count described in section 222(c),’’.
(2) SPECIAL RULE.—Subsection (c) of section
4975 of such Code is amended by adding at the end
the following new paragraph:
‘‘(6) SPECIAL RULE FOR SENIOR CITIZEN REAL
PROPERTY
TAX
ACCOUNTS.—The individual for
whose benefit a senior citizen real property tax ac-
count is established shall be exempt from the tax im-
posed by this section with respect to any transaction
concerning such account (which would otherwise be
taxable under this section) if section 222(d)(2) ap-
plies with respect to such transaction.’’.
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(d) FAILURE TO PROVIDE REPORTS ON SENIOR CIT-
IZEN REAL PROPERTY TAX ACCOUNTS.—Paragraph (2)
of section 6693(a) of such Code (relating to failure to pro-
vide reports on individual retirement accounts or annu-
ities) is amended by redesignating subparagraphs (C) and
(D) as subparagraphs (D) and (E), respectively, and by
inserting after subparagraph (B) the following new sub-
paragraph:
‘‘(C) section 222(g) (relating to senior cit-
izen real property tax accounts),’’.
(e) TAX ON EXCESS CONTRIBUTIONS.—
(1) IN
GENERAL.—Subsection (a) of section
4973 of such Code is amended by redesignating
paragraphs (3) and (4) as paragraphs (4) and (5),
respectively, and by inserting after paragraph (2)
the following new paragraph:
‘‘(3) a senior citizen real property tax account
(as defined in section 222(c)),’’.
(2) EXCESS
CONTRIBUTIONS
DEFINED.—Sec-
tion 4973 of such Code is amended by adding at the
end the following new subsection:
‘‘(g) EXCESS CONTRIBUTIONS TO SENIOR CITIZEN
REAL PROPERTY TAX ACCOUNTS.—For purposes of this
section, in the case of senior citizen real property tax ac-
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counts maintained for the benefit of any 1 beneficiary, the
term ‘excess contributions’ means the sum of—
‘‘(1) the excess (if any) of—
‘‘(A) the amount contributed for the tax-
able year to senior citizen real property tax ac-
counts (other than a qualified rollover contribu-
tion described in section 222(e)), over
‘‘(B) the amount allowable as a contribu-
tion under sections 222 (b) and (c), and
‘‘(2) the amount determined under this sub-
section for the preceding taxable year, reduced by
the sum of—
‘‘(A) the distributions out of the accounts
for the taxable year, and
‘‘(B) the excess (if any) of the maximum
amount allowable as a contribution under sec-
tions 222 (b) and (c) for the taxable year over
the amount contributed by the individual to all
individual retirement plans for the taxable year.
For purposes of this subsection, any contribution
which is distributed from a Roth IRA in a distribu-
tion described in section 222(e)(4) shall be treated
as an amount not contributed.’’.
(f) CLERICAL AMENDMENT.—The table of sections
for part VII of subchapter B of chapter 1 of such Code
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is amended by striking the last item and inserting the fol-
lowing new items:
‘‘Sec. 222. Senior citizen real property tax accounts.
‘‘Sec. 223. Cross reference.’’.
(g) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
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