I
106TH CONGRESS
1ST SESSION
H. R. 2873
To amend the Internal Revenue Code of 1986 to allow individuals a deduction
for contributions to education individual retirement accounts, to increase
the amount which may be contributed to such accounts, to permit such
accounts to be used to pay elementary and secondary education expenses
and training expenses of older individuals, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 15, 1999
Mr. ENGLISH 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 allow indi-
viduals a deduction for contributions to education indi-
vidual retirement accounts, to increase the amount which
may be contributed to such accounts, to permit such
accounts to be used to pay elementary and secondary
education expenses and training expenses of older indi-
viduals, 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.
This Act may be cited as the ‘‘Education for Life Act
of 1999’’.
SEC. 2. MODIFICATIONS TO EDUCATION INDIVIDUAL RE-
TIREMENT ACCOUNTS.
(a) WITHDRAWALS
FOR ELEMENTARY
AND SEC-
ONDARY SCHOOL EXPENSES AND FOR JOB TRAINING EX-
PENSES BY OLDER INDIVIDUALS.—
(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 elementary and sec-
ondary education expenses (as defined in
paragraph (4)),
‘‘(ii) qualified higher education ex-
penses (as defined in section 529(e)(3)),
and
‘‘(iii) qualified job training expenses
(as defined in paragraph (5)).
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; QUALIFIED
JOB
TRAINING
EXPENSES.—Section 530(b) of such Code is amend-
ed by adding at the end the following new para-
graphs:
‘‘(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, computer equipment (in-
cluding related software and services) and other
equipment, transportation, and supplementary
expenses required for the enrollment or attend-
ance of the designated beneficiary of the trust
at a public, private, or religious 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.
‘‘(5) QUALIFIED JOB TRAINING EXPENSES.—
‘‘(A) IN
GENERAL.—The term ‘qualified
job training expenses’ means—
‘‘(i) tuition and fees required for the
enrollment or attendance of a worker in an
applicable training program,
‘‘(ii) fees, books, supplies, and equip-
ment required for an applicable training
program, and
‘‘(iii) a reasonable allowance for meals
and lodging while attending an applicable
training program.
‘‘(B) APPLICABLE TRAINING PROGRAM.—
For purposes of subparagraph (A), the term
‘applicable training program’ means—
‘‘(i) any applicable program (as de-
fined in section 314(g) of the Job Training
Partnership Act), and
‘‘(ii) any training program approved
under section 236 of the Trade Act of
1974.’’.
(3) CONTRIBUTIONS TO ACCOUNT PERMITTED
UNTIL BENEFICIARY ATTAINS AGE 55.—Clause (ii)
of section 530(b)(1)(A) of such Code is amended by
striking ‘‘age 18’’ and inserting ‘‘age 55’’.
(4) 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 CONTRIBUTIONS
TO
EDUCATION INDIVIDUAL RETIREMENT ACCOUNTS.—Sec-
tions 530(b)(1)(A)(iii) and 4973(e)(1)(A) of such Code
are each amended by striking ‘‘$500’’ and inserting
‘‘$2,500’’.
(c) DEDUCTION FOR CONTRIBUTIONS TO EDUCATION
INDIVIDUAL RETIREMENT ACCOUNTS.—
(1) IN GENERAL.—Part VII of subchapter B of
chapter 1 of such Code (relating to additional
itemized deductions for individuals) is amended by
redesignating section 222 as section 223 and by in-
serting after section 221 the following new section:
‘‘SEC. 222. CONTRIBUTIONS TO EDUCATION INDIVIDUAL
RETIREMENT ACCOUNTS.
‘‘(a) DEDUCTION ALLOWED.—In the case of an indi-
vidual, there shall be allowed as a deduction the amount
paid in cash for the taxable year by or on behalf of such