I 
109TH CONGRESS 
1ST SESSION 
H. R. 264 
To amend the Internal Revenue Code of 1986 to allow a lump sum contribu-
tion to Coverdell education savings accounts whenever the contribution 
limit is increased. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 6, 2005 
Mr. BRADLEY of New Hampshire 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 a 
lump sum contribution to Coverdell education savings 
accounts whenever the contribution limit is increased. 
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 ‘‘Enhancing Resources 
Utilized in Developing Investments for Tuition Expendi-
tures Act of 2003’’.
SEC. 2. LUMP SUM CONTRIBUTION TO COVERDELL EDU-
CATION SAVINGS ACCOUNTS. 
(a) 
IN
GENERAL.—Clause 
(iii) 
of 
section 
530(b)(1)(A) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘and new limit lump sum contribu-
tions’’ after ‘‘rollover contributions’’. 
(b) NEW LIMIT LUMP SUM CONTRIBUTIONS.—Sub-
section (b) of section 530 of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(6) NEW LIMIT LUMP SUM CONTRIBUTIONS.— 
The amount of the new limit lump sum contribution 
for any taxable year may not exceed the excess of— 
‘‘(A) $250 multiplied by a fraction— 
‘‘(i) the numerator of which is the 
amount in effect for the taxable year under 
paragraph (1)(A)(iii), and 
‘‘(ii) the denominator of which is 
$250 or, if the beneficiary of the Coverdell 
education savings account was born after 
December 31, 1997, the amount in effect 
under paragraph (1)(A)(iii) on the date of 
such birth, over 
‘‘(B) the aggregate of the amounts deter-
mined under subparagraph (A) with respect to 
such contributions for all previous taxable 
years.’’.
(c) TAX ON EXCESS CONTRIBUTIONS.— 
(1) IN
GENERAL.—Subsection (e) of section 
4973 of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(3) RULE FOR NEW LIMIT LUMP SUM CON-
TRIBUTION.—In the case of new limit lump sum 
contributions to Coverdell education savings ac-
counts maintained for the benefit of any one bene-
ficiary, the term ‘excess contributions’ means the 
sum of— 
‘‘(A) the amount by which the amount con-
tributed for the taxable year to such accounts 
exceeds the dollar amount in effect under sec-
tion 530(b)(6) (or, if less, the sum of the max-
imum amounts permitted to be contributed 
under section 530(c) by the contributors to 
such accounts for such year), and 
‘‘(B) the amount determined under this 
subsection for the preceding taxable year, re-
duced by the sum of— 
‘‘(i) the distributions out of the ac-
counts for the taxable year (other than 
rollover distributions and contributions to 
which paragraph (1) applies), and
‘‘(ii) the excess (if any) of the max-
imum new limit lump sum contribution 
which may be contributed to the accounts 
for the taxable year over the new limit 
lump sum contribution contributed to the 
accounts for the taxable year.’’. 
(2) EXCEPTION TO ANNUAL RULE.—Paragraph 
(2) of section 4973(e) of such Code is amended by 
adding after subparagraph (B) the following new 
subparagraph: 
‘‘(C) Any new limit lump sum contribution 
(as defined in section 530(b)(6)).’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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