I
105TH CONGRESS
1ST SESSION
H. R. 2373
To amend the Internal Revenue Code of 1986 to allow tax-free expenditures
from education individual retirement accounts for elementary and second-
ary school expenses and to increase the maximum annual amount of
contributions to such accounts.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 1, 1997
Mr. GINGRICH (for himself, Mr. ARMEY, Mr. DELAY, Mr. SOLOMON, Mr. LIV-
INGSTON, Mr. ARCHER, Mr. THOMAS, Ms. DUNN, Mr. BOEHNER, Mr.
MCINTOSH, Mr. LINDER, Ms. PRYCE of Ohio, Mr. CRAPO, Mr. BLILEY,
Mr. PICKERING, Mr. INGLIS of South Carolina, Mr. TALENT, Mr.
NUSSLE, Ms. GRANGER, Mr. CRANE, Mr. COLLINS, Mr. CHRISTENSEN,
Mr. BUNNING, Mr. HAYWORTH, Mr. HERGER, Mr. SAM JOHNSON of
Texas, Mr. WELLER, Mr. ENSIGN, Mr. GOODLING, Mr. HOEKSTRA, Mr.
RIGGS, Mr. BALLENGER, Mr. GREENWOOD, Mr. NORWOOD, Mr. PAUL,
Mr. PETERSON of Pennsylvania, Mr. SOUDER, Mr. PARKER, Mr. BURTON
of Indiana, Mr. ROHRABACHER, Mr. COBURN, Mr. MILLER of Florida,
Mr. MANZULLO, Mr. CHAMBLISS, Mr. GIBBONS, Mr. RILEY, Mr.
SNOWBARGER, Mr. BARTLETT
of Maryland, Mrs. FOWLER, Mr.
STEARNS, Mr. CHABOT, Mr. NEUMANN, Mr. HEFLEY, Mr. HILL, Mr.
PITTS, Mr. RYUN, Mr. ROGAN, Mr. BARTON of Texas, Mr. SUNUNU, Mr.
FLAKE, 
Mr. 
HUNTER, 
Mr. 
GRAHAM, 
Mrs. 
EMERSON, 
Mr.
KNOLLENBERG, Mr. POMBO, Mr. LIPINSKI, Mr. WELDON of Florida, Mr.
HULSHOF, Mr. HASTINGS of Washington, Mr. BARR of Georgia, Mr.
SHAYS, and Mr. PAPPAS) introduced the following bill; which was re-
ferred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow tax-
free expenditures from education individual retirement
accounts for elementary and secondary school expenses
and to increase the maximum annual amount of con-
tributions to such accounts.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Parents and Students
Savings Account Plus Act’’.
SEC. 2. MODIFICATIONS TO EDUCATION INDIVIDUAL RE-
TIREMENT ACCOUNTS.
(a) TAX-FREE EXPENDITURES
FOR ELEMENTARY
AND SECONDARY SCHOOL EXPENSES.—
(1) IN GENERAL.—Section 530(b)(2) of the In-
ternal Revenue Code of 1986 is amended to read as
follows:
‘‘(2) QUALIFIED EDUCATION EXPENSES.—
‘‘(A) IN
GENERAL.—The term ‘qualified
education expenses’ means—
‘‘(i) qualified higher education ex-
penses (as defined in section 529(e)(3)),
and
‘‘(ii) qualified elementary and second-
ary education expenses (as defined in para-
graph (4)).
Such expenses shall be reduced as provided in
section 25A(g)(2).
‘‘(B) QUALIFIED
STATE
TUITION
PRO-
GRAMS.—Such term shall include amounts paid
or incurred to purchase tuition credits or cer-
tificates, or to make contributions to an ac-
count, under a qualified State tuition program
(as defined in section 529(b)) for the benefit of
the beneficiary of the account.’’
(2) QUALIFIED ELEMENTARY AND SECONDARY
EDUCATION
EXPENSES.—Section 530(b) of such
Code is amended by adding at the end the following
new paragraph:
‘‘(4) QUALIFIED ELEMENTARY AND SECONDARY
EDUCATION EXPENSES.—
‘‘(A) IN GENERAL.—The term ‘qualified el-
ementary and secondary education expenses’
means tuition, fees, tutoring, special needs serv-
ices, books, supplies, equipment, transportation,
and supplementary expenses required for the
enrollment or attendance of the designated ben-
eficiary of the trust at a public, private, or sec-
tarian school.
‘‘(B) 
SPECIAL
RULE
FOR
HOMESCHOOLING.—Such term shall include ex-
penses described in subparagraph (A) required
for education provided for homeschooling if the
requirements of any applicable State or local
law are met with respect to such education.
‘‘(C) SCHOOL.—The term ‘school’ means
any school which provides elementary education
or secondary education (through grade 12), as
determined under State law.’’
(3) CONFORMING
AMENDMENTS.—Subsections
(b)(1) and (d)(2) of section 530 of such Code are
each amended by striking ‘‘higher’’ each place it ap-
pears in the text and heading thereof.
(b) INCREASE
IN MAXIMUM ANNUAL CONTRIBU-
TIONS.—
(1) IN GENERAL.—Section 530(b)(1)(A)(iii) of
the Internal Revenue Code of 1986 is amended by
striking ‘‘$500’’ and inserting ‘‘$2,000’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 530(d)(4)(C) of such Code is
amended by striking ‘‘$500’’ and inserting
‘‘$2,000’’.
(B) Section 4973(e)(1)(A) of such Code is
amended by striking ‘‘$500’’ and inserting
‘‘$2,000’’.
(c) EFFECTIVE DATE; REFERENCES.—
(1) EFFECTIVE DATE.—The amendments made
by this section shall take effect as if included in the
amendments made by section 213 of the Taxpayer
Relief Act of 1997.
(2) REFERENCES.—Any reference in this sec-
tion to any section of the Internal Revenue Code of
1986 shall be a reference to such section as added
by the Taxpayer Relief Act of 1997.
Æ