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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘USAccounts: Investing in America’s Future Act of 
2014’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
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 re-
porting. 
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. 
(c) DEFINITIONS.—For purposes of this Act— 
(1) 
USACCOUNT
FUND.—The 
term 
‘‘USAccount Fund’’ means the fund established 
under section 3. 
(2) USACCOUNT.—The term ‘‘USAccount’’ 
means an account established under section 4. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury or the Secretary’s del-
egate. 
(4) USACCOUNT
FUND
BOARD.—The term 
‘‘USAccount Fund Board’’ means the board estab-
lished pursuant to section 7. 
(5) EXECUTIVE DIRECTOR.—The term ‘‘Execu-
tive Director’’ means the executive director ap-
pointed pursuant to section 7. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) There is a strong link between savings and 
economic opportunity. Children in the poorest fifth 
of households who manage to move up the income 
ladder as adults have almost ten times the wealth of 
those who remain at the bottom. 
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(2) Even a small amount of children’s savings 
can have a significant impact on college success, a 
key driver of economic mobility. Low- and moderate- 
income children with less than $500 saved for col-
lege are three times more likely to enroll in college 
and four times more likely to graduate than children 
with no savings. 
(3) Most working families in America lack sav-
ings and face financial insecurity as a result. 44 per-
cent of families are ‘‘liquid asset poor,’’ meaning 
they lack accessible savings to survive for three 
months at the Federal poverty level. 
(4) Families with children face additional bar-
riers to building savings. These families are more 
likely than childless households to live in asset pov-
erty. 
(5) The Great Recession has exacerbated finan-
cial insecurity for millions of American families. Be-
tween 2009 and 2011, the bottom 93 percent of 
households saw a drop in net worth, while the 
wealthiest 7 percent of households saw a significant 
increase in net worth. 
(6) Children’s savings accounts programs are 
evidence-based and have been tested throughout the 
country. In 2003, the Saving for Education, Entre-
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preneurship, and Downpayment (SEED) national 
demonstration project was established to evaluate 
the policy and practice of savings accounts for chil-
dren. SEED found that even very low-income par-
ents will save and invest for their children’s future 
if given the opportunity. 
(7) Since 2009, publicly funded, universal chil-
dren’s savings accounts programs have launched 
citywide in San Francisco, California, countywide in 
Cuyahoga County, Ohio, and statewide in Nevada 
and Maine. Additional children’s savings programs 
serving thousands of children have launched or are 
launching in Colorado, Hawaii, Illinois, Kansas, 
Michigan, Minnesota, Mississippi, New Mexico, New 
York, Pennsylvania, South Dakota, Texas, Wash-
ington, and Washington, DC. 
(8) In order to expand economic opportunity 
and spur economic growth, the United States should 
promote savings and investments for all Americans. 
SEC. 3. USACCOUNT FUND. 
(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a fund to be known as the 
‘‘USAccount Fund’’. 
(b) AMOUNTS HELD
BY FUND.—The USAccount 
Fund consists of the sum of all amounts paid into the 
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Fund under this Act, increased by the total net earnings 
from investments of sums held in the Fund or reduced 
by the total net losses from investments of sums held in 
the Fund, and reduced by the total amount of payments 
made from the Fund (including payments for administra-
tive expenses). 
(c) USE OF FUND.— 
(1) IN GENERAL.—The sums in the USAccount 
Fund are appropriated and shall remain available 
without fiscal year limitation— 
(A) to make contributions to USAccounts, 
(B) to invest under section 6, 
(C) to make distributions in accordance 
with this Act, 
(D) to pay the administrative expenses of 
carrying out this Act, and 
(E) to purchase insurance as provided in 
section 8(c)(2). 
(2) EXCLUSIVE PURPOSES.—The sums in the 
USAccount Fund shall not be appropriated for any 
purpose other than the purposes specified in this 
section and may not be used for any other purpose. 
(d) TRANSFERS TO USACCOUNT FUND.—The Sec-
retary shall make transfers from the general fund of the 
Treasury to the USAccount Fund as follows: 
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(1) AUTOMATIC CONTRIBUTION.—Upon receipt 
of a certification under section 4(b)(2) with respect 
to an individual, the Secretary shall transfer $500 to 
the USAccount of the individual. 
(2) MATCHING CONTRIBUTIONS.—Upon receipt 
of each certification under section 4(d) with respect 
to an individual, the Secretary shall transfer the 
matching amount to the USAccount of the indi-
vidual. 
(e) PRIVATE CONTRIBUTIONS.—The Executive Di-
rector shall pay into the USAccount Fund such amounts 
as are contributed under section 4(c). 
(f) PROHIBITION ON USE OF PAYROLL TAXES TO 
FUND
USACCOUNTS.—The 
USAccount 
Fund 
and 
USAccounts are wholly separate and unique from the So-
cial Security system. No amount from any tax on employ-
ment may be contributed to the USAccount Fund or 
USAccounts. 
SEC. 4. USACCOUNTS. 
(a) IN GENERAL.— 
(1) ESTABLISHMENT.—The Executive Director 
shall establish in the USAccount Fund an account 
(to be known as a ‘‘USAccount’’) for each qualifying 
child certified under subsection (b). Each such ac-
count shall be identified to its account holder by 
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means of a unique personal identifier currently rec-
ognized by the Internal Revenue Service and shall 
remain in the USAccount Fund unless transferred 
to private management under subsection (g). 
(2) ACCOUNT BALANCE.—The balance in an ac-
count holder’s USAccount at any time is the excess 
of— 
(A) the sum of— 
(i) 
all 
deposits 
made 
into 
the 
USAccount Fund and credited to the ac-
count under paragraph (3), and 
(ii) the total amount of allocations 
made to and reductions made in the ac-
count pursuant to paragraph (4), over 
(B) the amounts paid out of the account 
with respect to such individual under subsection 
(d). 
(3) CREDITING OF CONTRIBUTIONS.—Pursuant 
to regulations which shall be prescribed by the Exec-
utive Director, the Executive Director shall credit to 
each USAccount the amounts paid into the 
USAccount Fund under section 3(d) which are at-
tributable to the account holder of such account. 
(4) ALLOCATION OF EARNINGS AND LOSSES.— 
The Executive Director shall allocate to each 
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USAccount an amount equal to the net earnings and 
net losses from each investment of sums in the 
USAccount Fund which are attributable, on a pro 
rata basis, to sums credited to such account, re-
duced by an appropriate share of the administrative 
expenses paid out of the net earnings, as determined 
by the Executive Director. 
(b) QUALIFYING CHILD.—For purposes of this Act— 
(1) IN GENERAL.—The term ‘‘qualifying child’’ 
has the meaning given such term by section 24(c) of 
the Internal Revenue Code of 1986. 
(2) CERTIFICATION OF ACCOUNT HOLDERS.— 
On the date on which a qualifying child is registered 
for a USAccount, the Secretary shall certify to the 
Executive Director the name of such qualifying 
child. 
(c) PRIVATE CONTRIBUTIONS.— 
(1) IN GENERAL.—The Executive Director shall 
accept cash contributions for payment into the 
USAccount Fund if such contribution is identified 
(in such manner as the Executive Director may re-
quire) with the account holder of a USAccount to 
whom it is to be credited at the time the contribu-
tion is made. 
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(2) ALTERNATIVE
METHODS
OF
CONTRIBU-
TION.— 
(A) PAYROLL DEDUCTION.—Under regula-
tions prescribed by the Executive Director and 
at the election of the employer, contributions 
under paragraph (1) may be made through pay-
roll deductions. 
(B) TAX
REFUNDS.—Under regulations 
prescribed by the Secretary, contributions under 
paragraph (1) may be made by an election to 
contribute all or a portion of the tax refund of 
the contributor. 
(3) ANNUAL
LIMITATION.—No contribution 
may be accepted under paragraph (1)— 
(A) unless it is in cash, 
(B) after the date on which the USAccount 
holder ceases to be a qualifying child, and 
(C) except in the case of matching con-
tributions under subsection (d), if such con-
tribution would result in aggregate contribu-
tions for the calendar year exceeding $2,000. 
(d) GOVERNMENT MATCHING CONTRIBUTION.— 
(1) IN GENERAL.—Upon such showing as the 
Executive Director may require to establish the basis 
for certification, the Executive Director shall, with 
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respect to each private contribution to the account 
of an account holder which is made before such ac-
count holder attains age 18, certify to the Secretary 
the matching amount with respect to such contribu-
tion. 
(2) MATCHING AMOUNT.— 
(A) IN GENERAL.—For purposes of this 
subsection, 
the 
term 
‘‘matching 
amount’’ 
means, an amount equal to 100 percent of pri-
vate contributions to the USAccount of an indi-
vidual during any calendar year beginning after 
the calendar year in which the USAccount is es-
tablished, not in excess of $500 for the calendar 
year. 
(B) PHASEOUT
BASED
ON
EARNED
IN-
COME CREDIT PHASEOUT.—The $500 in sub-
paragraph (A) shall be reduced (but not below 
zero) by an amount equal to the phaseout per-
centage of so much of the adjusted gross in-
come (or, if greater, the earned income) of the 
taxpayer for the taxable year as exceeds the 
phaseout amount. For purposes of this para-
graph, terms used in the preceding sentence 
which are used in section 32 of the Internal 
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Revenue Code of 1986 shall have the meanings 
given such terms by such section 32. 
(3) PRIVATE CONTRIBUTION.—For purposes of 
this subsection, the term ‘‘private contribution’’ 
means a contribution accepted under subsection (c). 
(e) DISTRIBUTIONS.— 
(1) IN GENERAL.—No amount may be distrib-
uted from a USAccount before the date on which the 
account holder attains the age of 18. 
(2) HIGHER
EDUCATION
EXPENSES.—Para-
graph (1) shall not apply to amounts paid for quali-
fied tuition and related expenses (as defined in sec-
tion 25A(f)(1)) of the account holder if the account 
holder is an eligible student (as defined in section 
25A(b)(3)) with respect to such expenses. 
(3) 
ROLLOVER.—Distributions 
from 
a 
USAccount after the date on which the account 
holder attains the age of 18 which, within 60 days 
of such distribution, are transferred to an individual 
retirement plan (as defined in section 7701(a)(37) of 
the Internal Revenue Code of 1986) of the account 
holder shall be treated as a rollover contribution 
which meets the requirements of section 408(d)(3) 
of such Code. 
(4) ACCOUNT TERMINATION.— 
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(A) IN GENERAL.—On the date on which 
the account holder attains age 19, the account 
shall cease to be treated as a USAccount and 
any remaining funds in the account shall be 
distributed to the account holder’s retirement 
savings vehicle established pursuant to the 
Presidential Memorandum on Retirement Sav-
ings Security issued January 28, 2014. 
(B) SPECIAL RULE RELATING TO MYIRA.— 
Amounts transferred to a savings vehicle under 
subparagraph (A) may be distributed from such 
vehicles during the 10-year period beginning on 
the date of such transfer without any penalty 
under the Internal Revenue Code of 1986. 
(f) RIGHTS OF LEGAL GUARDIAN.—Until the account 
holder of a USAccount attains age 18, any rights or duties 
of the account holder under this Act with respect to such 
account shall be exercised or performed by the legal guard-
ian of such account holder. 
(g) PRIVATE MANAGEMENT.— 
(1) IN
GENERAL.—The account holder of a 
USAccount may elect, under regulations prescribed 
by the Secretary, to transfer the USAccount to a 
trustee who meets the requirements of paragraph 
(2). 
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(2) 
TRUSTEE
REQUIREMENTS.—A 
trustee 
meets the requirements of this paragraph if the 
trustee— 
(A) is a bank (as defined in section 
408(n)) or another person who demonstrates to 
the satisfaction of the Secretary that the man-
ner in which that person will administer the 
USAccount will be consistent with the require-
ments of this Act or who has so demonstrated 
with respect to any USAccount, 
(B) agrees to a cap on its fees and costs, 
as determined by the Treasury, for the manage-
ment of USAccounts, 
(C) provides an investment fund that 
maximizes growth over time while minimizing 
risk, and 
(D) provides the safeguards with respect to 
USAccounts required by the Secretary. 
(3) ADDITIONAL
REQUIREMENTS.—For pur-
poses of this subsection, rules similar to the rules of 
paragraphs (3), (4), and (5) of section 408 of the 
Internal Revenue Code of 1986 shall apply. 
(h) ADJUSTMENT FOR INFLATION.— 
(1) IN GENERAL.—For each calendar year be-
ginning after 2015, the dollar amounts under sec-
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tions 3(d)(1), 4(c)(3)(C), and 4(d)(2) shall each be 
increased by such dollar amount multiplied by the 
cost-of-living adjustment determined under section 
1(f)(3) of the Internal Revenue Code of 1986 deter-
mined by substituting ‘‘calendar year 2014’’ for 
‘‘calendar year 1992’’ in subparagraph (B) thereof. 
(2) ROUNDING.—If any amount adjusted under 
clause (i) is not a multiple of $50, such amount 
shall be rounded to the next lowest multiple of $50. 
SEC. 5. ASSIGNMENT, ALIENATION, AND TREATMENT OF 
DECEASED INDIVIDUALS. 
(a) ASSIGNMENT AND ALIENATION.—Under regula-
tions which shall be prescribed by the Executive Director, 
rules relating to assignment and alienation applicable 
under chapter 84 of title 5, United States Code, with re-
spect to amounts held in accounts in the Thrift Savings 
Fund shall apply with respect to amounts held in 
USAccounts in the USAccount Fund. 
(b) TREATMENT OF ACCOUNTS OF DECEASED INDI-
VIDUALS.—In the case of a deceased account holder of a 
USAccount which has an account balance greater than 
zero, upon receipt of notification of such individual’s 
death, the Executive Director shall close the account and 
shall transfer the balance in such account to the duly ap-
pointed legal representative of the estate of the deceased 
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account holder, or if there is no such representative, to 
the person or persons determined to be entitled thereto 
under the laws of the domicile of the deceased account 
holder. 
SEC. 6. RULES GOVERNING USACCOUNTS RELATING TO IN-
VESTMENT, ACCOUNTING, AND REPORTING. 
(a) 
DEFAULT
INVESTMENT
PROGRAM.—The 
USAccount Fund Board shall establish a default invest-
ment program under which, in a manner similar to a 
lifecycle investment program, sums in each USAccount are 
allocated to investment funds in the USAccount Fund 
based on the amount of time before the account holder 
attains the age of 18. Each account holder of a 
USAccount shall be enrolled in such program unless such 
account holder, in such form and manner as prescribed 
by the Executive Director, elects otherwise. 
(b) OTHER RULES.— 
(1) IN
GENERAL.—Under regulations which 
shall be prescribed by the Executive Director, and 
subject to the provisions of this Act, the following 
provisions shall apply with respect to the USAccount 
Fund and accounts maintained in such Fund in the 
same manner and to the same extent as such provi-
sions relate to the Thrift Savings Fund and the ac-
counts maintained in the Thrift Savings Fund: 
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(A) Section 8438 of title 5, United States 
Code (relating to investment of the Thrift Sav-
ings Fund). 
(B) Section 8439(b) of such title (relating 
to engagement of independent qualified public 
accountant). 
(C) Section 8439(c) of such title (relating 
to periodic statements and summary descrip-
tions of investment options). 
(D) Section 8439(d) of such title (relating 
to assumption of risk). 
(2) APPLICATION
RULES.—For purposes of 
paragraph (1), references in such sections 8438 and 
8439 to an employee, Member, former employee, or 
former Member shall be deemed references to an ac-
count holder of a USAccount in the USAccount 
Fund. 
(c) CONFIDENTIALITY AND DISCLOSURE.— 
(1) IN GENERAL.—Except as otherwise author-
ized by Federal law, the USAccount Fund Board, 
the Executive Director, and any employee of the 
USAccount Fund Board shall not disclose informa-
tion with respect to the USAccount Fund and or any 
account maintained in such Fund. 
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(2) DISCLOSURE
TO
DESIGNEE
OF
BENE-
FICIARY.—The Executive Director may, subject to 
such requirements and conditions as he may pre-
scribe by regulations, disclose such information with 
respect to the USAccount of the beneficiary to such 
person or persons as the beneficiary may designate 
in a request for or consent to such disclosure, or to 
any other person at the beneficiary’s request to the 
extent necessary to comply with a request for infor-
mation or assistance made by the beneficiary to such 
other person. 
SEC. 7. USACCOUNT FUND BOARD. 
(a) IN GENERAL.—There is established in the execu-
tive branch of the Government a USAccount Fund Board. 
(b) COMPOSITION, DUTIES, 
AND
RESPONSIBIL-
ITIES.—Subject to the provisions of this Act, the following 
provisions shall apply with respect to the USAccount Fund 
Board in the same manner and to the same extent as such 
provisions relate to the Federal Retirement Thrift Invest-
ment Board: 
(1) Section 8472 of title 5, United States Code 
(relating to composition of Federal Retirement 
Thrift Investment Board). 
(2) Section 8474 of such title (relating to Exec-
utive Director). 
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(3) Section 8475 of such title (relating to in-
vestment policies). 
(4) Section 8476 of such title (relating to ad-
ministrative provisions). 
SEC. 8. FIDUCIARY RESPONSIBILITIES. 
(a) IN GENERAL.—Under regulations of the Sec-
retary of Labor, the provisions of sections 8477 and 8478 
of title 5, United States Code, shall apply in connection 
with the USAccount Fund and the accounts maintained 
in such Fund in the same manner and to the same extent 
as such provisions apply in connection with the Thrift Sav-
ings Fund and the accounts maintained in the Thrift Sav-
ings Fund. 
(b) INVESTIGATIVE
AUTHORITY.—Any authority 
available to the Secretary of Labor under section 504 of 
the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1134) is hereby made available to the Sec-
retary of Labor, and any officer designated by the Sec-
retary of Labor, to determine whether any person has vio-
lated, or is about to violate, any provision applicable under 
subsection (a). 
(c) EXCULPATORY PROVISIONS; INSURANCE.— 
(1) IN GENERAL.—Any provision in an agree-
ment or instrument which purports to relieve a fidu-
ciary from responsibility or liability for any responsi-
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bility, obligation, or duty under this Act shall be 
void. 
(2) INSURANCE.—Amounts in the USAccount 
Fund available for administrative expenses shall be 
available and may be used at the discretion of the 
Executive Director to purchase insurance to cover 
potential liability of persons who serve in a fiduciary 
capacity with respect to the Fund and accounts 
maintained therein, without regard to whether a pol-
icy of insurance permits recourse by the insurer 
against the fiduciary in the case of a breach of a fi-
duciary obligation. 
SEC. 9. ACCOUNTS DISREGARDED IN DETERMINING ELIGI-
BILITY FOR FEDERAL BENEFITS. 
Amounts in any USAccount shall not be taken into 
account in determining any individual’s or household’s fi-
nancial eligibility for, or amount of, any benefit or service, 
paid for in whole or in part with Federal funds, including 
student financial aid. 
SEC. 10. REPORTS. 
The Executive Director, in consultation with the Sec-
retary, shall annually transmit a written report to the 
Congress. Such report shall include— 
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ings given such terms by the USAccounts: Investing in 
America’s Future Act of 2014. 
‘‘(c) TAX TREATMENT
OF DISTRIBUTIONS.—Any 
amount paid or distributed out of a USAccount— 
‘‘(1) which meets the distribution rules of the 
USAccounts: Investing in America’s Future Act of 
2014 shall not be includible in gross income, and 
‘‘(2) which does not meet the distribution rules 
of section 4(d) of such Act shall be included in the 
gross income of the account holder.’’. 
(b) ENFORCEMENT PROVISIONS RELATING TO PRI-
VATE MANAGEMENT OF USACCOUNTS.— 
(1) EXCESS CONTRIBUTIONS.—Section 4973 of 
the Internal Revenue Code of 1986 is amended— 
(A) by striking ‘‘or’’ at the end of sub-
section (a)(4), by inserting ‘‘or’’ at the end of 
subsection (a)(5), and by inserting after sub-
section (a)(5) the following new paragraph: 
‘‘(5) a USAccount subject to management 
under section 4(g) of the USAccounts: Investing in 
America’s Future Act of 2014,’’, and 
(B) by adding at the end the following new 
subsection: 
‘‘(h) EXCESS CONTRIBUTIONS TO PRIVATELY MAN-
AGED USACCOUNTS.—For purposes of this section, in the 
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management under section 4(g) of the USAccounts: 
Investing in America’s Future Act of 2014 shall be 
exempt from the tax imposed by this section with re-
spect to any transaction concerning such account 
(which would otherwise be taxable under this sec-
tion) if, with respect to such transaction, the ac-
count ceases to be a USAccount by reason of the ap-
plication of section 530A(c)(2) to such account.’’, 
and 
(B) in subsection (e)(1) by redesignating 
subparagraph (G) as subparagraph (H) and by 
inserting after subparagraph (F) the following 
new subparagraph: 
‘‘(G) a USAccount subject to management 
under section 4(g) of the USAccounts: Invest-
ing in America’s Future Act of 2014,’’. 
(c) INCREASE IN CHILD TAX CREDIT.— 
(1) IN GENERAL.—Section 24 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following: 
‘‘(g) USACCOUNT CONTRIBUTIONS.—For purposes 
of this section— 
‘‘(1) IN GENERAL.—The amount allowed as a 
credit under subsection (a) shall be increased by the 
USAccount contribution amount. 
VerDate Sep 11 2014 
02:23 Sep 26, 2014
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emcdonald on DSK67QTVN1PROD with BILLS