Helping Families Save for Education Act

Bill: 113-hr-2006
Sponsor: full_name: Rep. Walberg, Tim [R-MI-7]
Introduced: 2013-05-15
Policy area: Taxation
Subjects: Higher education

Income tax exclusion

Student aid and college costs
Latest action: action_date: 2013-05-15
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2013-05-15
action_desc: Introduced in House
text: <p>Helping Families Save for Education Act - Amends the Internal Revenue Code, with respect to Coverdell education savings accounts, to: (1) increase the age limit for beneficiaries of such accounts after which contributions may not be made from age 18 to age 22, and (2) increase the maximum contribution limit in any taxable year from $2,000 to $10,000.</p>

tv_txt: I 113th CONGRESS 1st Session H. R. 2006 IN THE HOUSE OF REPRESENTATIVES May 15, 2013 Mr. Walberg (for himself and Mr. Kildee ) 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 expand access to Coverdell education savings accounts.

1. Short title This Act may be cited as the Helping Families Save for Education Act . 2. Findings The Congress finds the following: (1) College costs have increased tremendously over the past decade. Between academic year 2002–2003 and academic year 2012–2013— (A) published tuition and fees for students at public 4-year institutions of higher education increased from $5,213 to $8,655 or by 66 percent beyond the rate of inflation, (B) published tuition and fees for students at public 2-year institutions of higher education increased from $2,129 to $3,131 or by 47 percent beyond the rate of inflation, and (C) published tuition and fees for students at private 4-year institutions of higher education increased from $22,974 to $29,056 or by 26 percent beyond the rate of inflation. (2) Federal financial aid for students has also increased rapidly but failed to mitigate the issues of rising college costs. Between academic year 2001–2002 and academic year 2011–2012— (A) the amount of Federal financial aid in the form of Federal Pell Grants, Federal student loans, campus-based aid, veterans educational benefits, and tax credits increased from $72.3 billion to $173.8 billion or by 140 percent beyond the rate of inflation, and (B) the Federal Government’s share of total student aid administered increased from 67 percent to 73 percent. 3. Expansion of Coverdell education savings accounts (a) Increase in age limitation of beneficiary after which contributions to account cannot be made Clause (ii) of section 530(b)(1)(A) of the Internal Revenue Code of 1986 is amended by striking age 18 and inserting age 22 . (b) Increase in annual dollar limitation on contributions to account Clause (iii) of section 530(b)(1)(A) of such Code is amended by striking $2,000 and inserting $10,000 . (c) Effective dates (1) Increase in age limitation The amendment made by subsection (a) shall apply to contributions made after the date of the enactment of this Act. (2) Increase in annual dollar limitation on contributions The amendments made by subsection (b) shall apply to contributions made in taxable years ending after the date of the enactment of this Act.