I 
109TH CONGRESS 
1ST SESSION H. R. 1163
To amend the Internal Revenue Code of 1986 to create Lifetime Savings 
Accounts. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 8, 2005
Mr. SAM JOHNSON of Texas (for himself and Mr. ENGLISH of Pennsylvania) 
introduced the following bill; which was referred to the Committee on 
Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to create 
Lifetime Savings 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 ‘‘Lifetime Savings Ac-
count Act of 2005’’. 
SEC. 2. LIFETIME SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Subchapter F of Chapter 1 of the 
Internal Revenue Code of 1986 (relating to exempt organi-
zations) is amended by adding at the end the following 
new part:
‘‘PART IX—LIFETIME SAVINGS ACCOUNTS 
‘‘SEC. 530A. LIFETIME SAVINGS ACCOUNTS. 
‘‘(a) GENERAL RULE.—A Lifetime Savings Account 
shall be exempt from taxation under this subtitle. Not-
withstanding the preceding sentence, such account shall 
be subject to the taxes imposed by section 511 (relating 
to imposition of tax on unrelated business income of chari-
table organizations). 
‘‘(b) LIFETIME SAVINGS ACCOUNT.—For purposes of 
this section, the term ‘Lifetime Savings Account’ means 
a trust created or organized in the United States for the 
exclusive benefit of an individual or his beneficiaries and 
which is designated (in such manner as the Secretary shall 
prescribe) at the time of the establishment of the trust 
as a Lifetime Savings Account, but only if the written gov-
erning instrument creating the trust meets the following 
requirements: 
‘‘(1) Except in the case of a qualified rollover 
contribution described in subsection (d)—
‘‘(A) no contribution will be accepted un-
less it is in cash, and 
‘‘(B) contributions will not be accepted for 
the calendar year in excess of the contribution 
limit specified in subsection (c)(1). 
‘‘(2) The trustee is a bank (as defined in sec-
tion 408(n)) or another person who demonstrates to
the satisfaction of the Secretary that the manner in 
which that person will administer the trust will be 
consistent with the requirements of this section or 
who has so demonstrated with respect to any indi-
vidual retirement plan. 
‘‘(3) No part of the trust assets will be invested 
in life insurance contracts. 
‘‘(4) The interest of an individual in the bal-
ance of his account is nonforfeitable. 
‘‘(5) The assets of the trust shall not be com-
mingled with other property except in a common 
trust fund or common investment fund. 
‘‘(c) TREATMENT
OF CONTRIBUTIONS
AND DIS-
TRIBUTIONS.—
‘‘(1) CONTRIBUTION LIMIT.—
‘‘(A) 
IN
GENERAL.—The 
aggregate 
amount of contributions (other than qualified 
rollover contributions described in subsection 
(d)) for any calendar year to all Lifetime Sav-
ings Accounts maintained for the benefit of an 
individual shall not exceed $5,000. 
‘‘(B) COST-OF-LIVING ADJUSTMENT.—
‘‘(i) IN GENERAL.—In the case of any 
calendar year after 2006, the $5,000
amount under subparagraph (A) shall be 
increased by an amount equal to—
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year, determined by 
substituting ‘calendar year 2005’ for 
‘calendar year 1992’ in subparagraph 
(B) thereof. 
‘‘(ii) 
ROUNDING
RULES.—If 
any 
amount after adjustment under clause (i) 
is not a multiple of $500, such amount 
shall be rounded to the next lower multiple 
of $500. 
‘‘(2) DISTRIBUTIONS.—Any distribution from a 
Lifetime Savings Account shall not be includible in 
gross income. 
‘‘(d) QUALIFIED ROLLOVER CONTRIBUTION.—For 
purposes of this section, the term ‘qualified rollover con-
tribution’ means a contribution to a Lifetime Savings Ac-
count—
‘‘(1) from another such account of the same 
beneficiary, but only if such amount is contributed