(i) include financial assets, the value 
of family home, retirement accounts, busi-
ness and entrepreneurial ventures, poten-
tial future inheritances, and any other as-
sets or debts; and 
(ii) continue to factor in current or 
past income to the extent such information 
is useful in estimating overall household 
wealth. 
(3) ADJUSTMENT FOR INFLATION.— 
(A) IN GENERAL.—For each calendar year 
beginning after 2024, each of the dollar 
amounts under paragraphs (1) and (2)(B)(i) 
shall be increased by such dollar amount multi-
plied by the cost-of-living adjustment deter-
mined under section 1(f)(3) of the Internal 
Revenue Code of 1986 determined by sub-
stituting ‘‘calendar year 2023’’ for ‘‘calendar 
year 2016’’ in subparagraph (A)(ii) thereof. 
(B) ROUNDING.—If any amount adjusted 
under paragraph (1) is not a multiple of $50, 
such amount shall be rounded to the next low-
est multiple of $50. 
(e) PROHIBITION ON USE OF PAYROLL TAXES TO 
FUND AO ACCOUNTS.—The American Opportunity Fund 
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and AO accounts are wholly separate and unique from the 
Social Security system. No amount from any tax on em-
ployment may be contributed to the American Opportunity 
Fund or AO accounts. 
SEC. 4. AO ACCOUNTS. 
(a) IN GENERAL.— 
(1) ESTABLISHMENT.—The Executive Director 
shall establish in the American Opportunity Fund an 
account (to be known as an ‘‘American Opportunity 
account’’ or an ‘‘AO account’’) for each eligible indi-
vidual certified under subsection (b). Each such ac-
count shall be identified to its account holder by 
means of a unique personal identifier currently rec-
ognized by the Internal Revenue Service and shall 
remain in the American Opportunity Fund. 
(2) ACCOUNT BALANCE.—The balance in an ac-
count holder’s AO account at any time is the excess 
of— 
(A) the sum of— 
(i) all deposits made into the Amer-
ican Opportunity Fund and credited to the 
account under paragraph (3); and 
(ii) the total amount of allocations 
made to and reductions made in the ac-
count pursuant to paragraph (4); over 
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(B) the amounts paid out of the account 
with respect to such individual under subsection 
(c). 
(3) CREDITING OF CONTRIBUTIONS.—Pursuant 
to regulations which shall be prescribed by the Exec-
utive Director, the Executive Director shall credit to 
each AO account the amounts paid into the Amer-
ican Opportunity Fund under section 3(d) which are 
attributable to the account holder of such account. 
(4) ALLOCATION OF EARNINGS AND LOSSES.— 
The Executive Director shall allocate to each AO ac-
count an amount equal to the net earnings and net 
losses from each investment of sums in the Amer-
ican Opportunity 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) ELIGIBLE INDIVIDUAL.—For purposes of this 
title— 
(1) IN
GENERAL.—The term ‘‘eligible indi-
vidual’’ means any individual who— 
(A) was born after December 31, 2005; 
(B) has not yet attained the age of 18 
years; and 
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(C) has a valid, unique, Federal Govern-
ment issued identification number recognized by 
the Internal Revenue Service. 
(2) CERTIFICATION OF ACCOUNT HOLDERS.— 
(A) AUTOMATIC CERTIFICATION FOR CER-
TAIN INDIVIDUALS BORN AFTER DECEMBER 31, 
2023.—On any date after December 31, 2023, 
on which an eligible individual is issued a social 
security 
account 
number 
under 
section 
203(c)(2) of the Social Security Act, the Com-
missioner of Social Security shall certify to the 
Executive Director and the Secretary of the 
Treasury the name of, and social security num-
ber issued to, such eligible individual. 
(B) OTHER INDIVIDUALS.—In the case of 
an eligible individual who is not certified under 
subparagraph (A), such individual may request 
the establishment an AO account under this 
subparagraph by application to the Executive 
Director, and the Executive Director shall cer-
tify such individual under this subparagraph. 
(c) RESTRICTIONS ON DISTRIBUTIONS.— 
(1) AGE-RELATED RESTRICTIONS.— 
(A) IN
GENERAL.—Except as otherwise 
provided in this paragraph, no amount may be 
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distributed from an AO account before the date 
on which the account holder attains the age of 
18. 
(B) HIGHER
EDUCATION
EXPENSES.— 
Subparagraph (A) shall not apply to amounts 
paid for qualified tuition and related expenses 
(as defined in section 25A(f)(1) of the Internal 
Revenue Code of 1986) of the account holder if 
the account holder is an eligible student (as de-
fined in section 25A(b)(3) of such Code) with 
respect to such expenses. 
(C) AUTHORITY TO PROVIDE HIGHER AGE 
LIMIT FOR CERTAIN DISTRIBUTIONS.—The Sec-
retary, in consultation with the American Op-
portunity Fund Advisory Board, may by regula-
tions provide for a higher age limitation with 
respects to distributions relating to certain cat-
egories of qualified expenses if the Secretary de-
termines that such higher age limitation is ap-
propriate. 
(2) USE-RELATED RESTRICTIONS.— 
(A) IN GENERAL.—No amount may be dis-
tributed from an AO account unless the account 
holder establishes, under rules established by 
the Executive Director in consultation with the 
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American Opportunity Fund Advisory Board, 
that such amount shall be used for a qualified 
expense. 
(B) QUALIFIED EXPENSE.—For purposes 
of this subsection— 
(i) IN GENERAL.—The term ‘‘qualified 
expense’’ means expenses for any of the 
following: 
(I) Education of the account 
holder at— 
(aa) an institution of higher 
education (as defined in section 
101 of the Higher Education Act 
of 1965 (20 U.S.C. 1001)); or 
(bb) an area career and 
technical education school (as de-
fined in section 3 of the Carl D. 
Perkins Career and Technical 
Education Act of 2006 (20 
U.S.C. 2302)). 
(II) Ownership of a home by the 
account holder. 
(III) Any expenses paid or in-
curred on or after the date on which 
the account holder attains age 591⁄2. 
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(IV) Any other investment in fi-
nancial assets or personal capital that 
provides long-term gains to wages and 
wealth, as established under regula-
tions promulgated by the Secretary, in 
consultation with the Executive Direc-
tor and the American Opportunity 
Fund Advisory Board. 
(ii) EXCEPTION.—Such term shall not 
include any expense described in clause (i) 
which is paid to a person who does not 
meet such standards as are prescribed by 
the Secretary, in consultation with the Ex-
ecutive Director and the American Oppor-
tunity Fund Advisory Board. 
(3) AMERICAN
OPPORTUNITY
ACCOUNT
ADVI-
SORY BOARD.—For purposes of this subsection, the 
term ‘‘American Opportunity Fund Advisory Board’’ 
means an advisory board established by the Sec-
retary consisting of individuals with expertise in sav-
ings and asset-building, home financing, education 
financing, consumer financial protection, and such 
other areas as the Secretary may determine appro-
priate. 
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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 AO ac-
counts in the American Opportunity Fund. 
(b) TREATMENT OF ACCOUNTS OF DECEASED INDI-
VIDUALS.—In the case of a deceased account holder of an 
AO account 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 AO ac-
count of such account holder’s surviving spouse or, if there 
is no such account of a surviving spouse, to the duly ap-
pointed legal representative of the estate of the deceased 
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 AO ACCOUNTS RELATING TO IN-
VESTMENT, ACCOUNTING, AND REPORTING. 
(a) INVESTMENT PROGRAM.— 
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(1) IN GENERAL.—The American Opportunity 
Fund Board shall invest amounts in the American 
Opportunity Fund in securities of the United States 
Government issued as provided in paragraph (2). 
(2) SECURITIES.— 
(A) IN GENERAL.—The Secretary of the 
Treasury is authorized to issue special interest- 
bearing obligations of the United States for 
purchase by the American Opportunity Fund. 
(B) INVESTMENT.— 
(i) Obligations issued for the purpose 
of this paragraph shall have maturities 
fixed with due regard to the needs of the 
American Opportunity Fund as determined 
by the Executive Director, and shall bear 
interest at a rate equal to the average mar-
ket yield (computed by the Secretary of the 
Treasury on the basis of market quotations 
as of the end of the calendar month next 
preceding the date of issue of such obliga-
tions) on all marketable interest-bearing 
obligations of the United States then form-
ing a part of the public debt which are not 
due or callable earlier than 10 years after 
the end of such calendar month. 
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(ii) Any average market yield com-
puted under clause (i) which is not a mul-
tiple of one-eighth of 1 percent, shall be 
rounded to the nearest multiple of one- 
eighth of 1 percent. 
(b) INDEPENDENT PUBLIC ACCOUNTANT.— 
(1) IN
GENERAL.—Under regulations which 
shall be prescribed by the Executive Director, and 
subject to the provisions of this title, section 8439(b) 
of title 5, United States Code (relating to engage-
ment of independent qualified public accountant), 
shall apply with respect to the American Oppor-
tunity Fund and accounts maintained in such Fund 
in the same manner and to the same extent as such 
section relates to the Thrift Savings Fund and the 
accounts maintained in the Thrift Savings Fund. 
(2) APPLICATION
RULES.—For purposes of 
paragraph (1), references in such section 8439(b) to 
an employee, Member, former employee, or former 
Member shall be deemed references to an account 
holder of an AO account in the American Oppor-
tunity Fund. 
(c) CONFIDENTIALITY AND DISCLOSURE.— 
(1) IN GENERAL.—Except as otherwise author-
ized by Federal law, the American Opportunity 
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Fund Board, the Executive Director, and any em-
ployee of the American Opportunity Fund Board 
shall not disclose information with respect to the 
American Opportunity Fund or any account main-
tained in such Fund. 
(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 AO account 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. AMERICAN OPPORTUNITY FUND BOARD. 
(a) IN GENERAL.—There is established in the execu-
tive branch of the Government an American Opportunity 
Fund Board. 
(b) COMPOSITION, DUTIES, 
AND
RESPONSIBIL-
ITIES.—Subject to the provisions of this title, the following 
provisions shall apply with respect to the American Oppor-
tunity Fund Board in the same manner and to the same 
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extent as such provisions relate to the Federal Retirement 
Thrift Investment 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). 
(3) 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 American Opportunity 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 Savings Fund and the accounts maintained in 
the Thrift Savings 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-
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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-
bility, obligation, or duty under this title shall be 
void. 
(2) INSURANCE.—Amounts in the American 
Opportunity Fund available for administrative ex-
penses shall be available and may be used at the dis-
cretion of the Executive Director to purchase insur-
ance 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 policy of insurance permits recourse by 
the insurer against the fiduciary in the case of a 
breach of a fiduciary obligation. 
SEC. 9. ACCOUNTS DISREGARDED IN DETERMINING ELIGI-
BILITY FOR FEDERAL BENEFITS. 
Amounts in any AO account 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. 
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SEC. 10. REPORTS. 
(a) REPORTS TO CONGRESS.—The Executive Direc-
tor, in consultation with the Secretary, shall annually 
transmit a written report to the Congress. Such report 
shall include— 
(1) a detailed description of the status and op-
eration of the American Opportunity Fund and the 
management of the AO accounts; and 
(2) a detailed accounting of the administrative 
expenses in carrying out this title, including the 
ratio of such administrative expenses to the balance 
of the American Opportunity Fund and the method-
ology adopted by the Executive Director for allo-
cating such expenses among the AO accounts. 
(b) REPORTS TO ACCOUNT HOLDERS.—The Amer-
ican Opportunity Fund Board shall prescribe regulations 
under which each individual for whom an AO account is 
maintained shall be furnished with an annual statement 
relating to the individual’s account, which shall include— 
(1) a statement of the balance of individual’s 
AO account; 
(2) a projection of the account’s growth by the 
time the individual attains the age of 18; and 
(3) such other information as the Secretary 
deems relevant. 
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SEC. 11. PROGRAMS FOR PROMOTING FINANCIAL CAPA-
BILITY. 
The Secretary of the Treasury, in coordination with 
the Financial Literacy and Education Commission, shall 
develop programs to promote the financial capability of 
account holders of AO accounts. 
SEC. 12. TAX TREATMENT. 
(a) CONTRIBUTIONS AND DISTRIBUTIONS.—Part III 
of subchapter B of chapter 1 of the Internal Revenue Code 
of 1986 is amended by inserting after section 139I the 
following new section: 
‘‘SEC. 139J. CONTRIBUTIONS TO AND DISTRIBUTIONS FROM 
AO ACCOUNTS. 
‘‘Gross income shall not include— 
‘‘(1) any contribution credited to the AO ac-
count of the taxpayer under section 4(a)(3) of the 
American Opportunity Accounts Act, and 
‘‘(2) any distribution from such an AO ac-
count.’’. 
(b) TAX TREATMENT OF EARNINGS AND DISTRIBU-
TIONS.—Subchapter F of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new part: 
‘‘PART IX—AMERICAN OPPORTUNITY FUND AND 
AO ACCOUNTS 
‘‘Sec. 530A. American Opportunity Fund and AO accounts. 
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‘‘SEC. 530A. AMERICAN OPPORTUNITY FUND AND AO AC-
COUNTS. 
‘‘(a) GENERAL RULE.—The American Opportunity 
Fund and AO accounts shall be exempt from taxation 
under this subtitle. Notwithstanding the preceding sen-
tence, a AO account shall be subject to the taxes imposed 
by section 511 (relating to imposition of tax on unrelated 
business income of charitable organizations). 
‘‘(b) DEFINITIONS.—For purposes of this section, the 
terms ‘American Opportunity Fund’ and ‘AO account’ 
have the meanings given such terms under the American 
Opportunity Accounts Act.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) The table of sections for part III of sub-
chapter B of chapter 1 of the Internal Revenue Code 
of 1986 is amended by inserting after the item re-
lated to section 139I the following new item: 
‘‘Sec. 139J. Contributions to and distributions from AO accounts.’’. 
(2) The table of parts for subchapter F of 
chapter 1 of such Code is amended by adding at the 
end the following new item: 
‘‘PART IX—AMERICAN OPPORTUNITY FUND AND AO ACCOUNTS’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2023. 
Æ 
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