Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

(a) Short Title.--This Act may be cited as the ''Child Savings
Account Act''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.

TITLE I--SAVINGS INCENTIVES FOR AMERICA'S CHILDREN

SEC. 101. ESTABLISHMENT OF CHILD SAVINGS ACCOUNTS WITHIN ROTH IRAS.

(a) In General.--Section 408A (relating to Roth IRAs) is amended by
adding at the end the following new subsection:
''(g) Child Savings Account.--
''(1) In general.--If the individual on whose behalf a Roth
IRA was established has not attained the age of 17 before the
close of any calendar year--
''(A) the Roth IRA shall be treated as a Child
Savings Account for the taxable year, and
''(B) this section shall be applied to the Roth IRA
for the taxable year with the modifications provided in
paragraphs (2) and (3).
''(2) Waiver of earned income requirement.--For purposes of
subsection (c)(2)(A), the maximum amount allowable as a
deduction under section 219 shall be computed without regard to
the compensation limitation of section 219(b)(1)(B).
''(3) Rollover where account holder dies before age 30.--If
an individual on whose behalf a Roth IRA was established dies
before attaining the age of 30--
''(A) the transfer of the individual's interest in
a Roth IRA to a member of the individual's family
(within the meaning of section 529(e)(2)) shall not be
considered a taxable transfer for purposes of this
title, and
''(B) such interest shall, on and after the date of
the transfer, be treated as a Roth IRA maintained for
the benefit of the family member and not of the
individual.''
(b) Conforming Amendments.--
(1) Section 408(a)(1) is amended by striking ''or
403(b)(8)'' and inserting '', 403(b)(8), or 408A(g)(3)''.
(2) Section 408(d)(3)(C)(ii)(II) is amended by inserting
''or in the case of a Roth IRA, a member of the same family of
such other individual''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 1999.

SEC. 102. ADDITIONAL CHILD CREDIT FOR CONTRIBUTIONS TO CHILD SAVINGS
ACCOUNTS BY TAXPAYERS NOT ELIGIBLE FOR ENTIRE CHILD
CREDIT.

(a) In General.--Section 24 (relating to child tax credit) is
amended by adding at the end the following new subsection:
''(g) Additional Refundable Credit for Contributions to Child
Savings Accounts.--
''(1) In general.--The aggregate credits allowed under
subpart C shall be increased by the lesser of--
''(A) the credit which would be allowed under this
section without regard to this subsection and
subsection (d) and the limitation under section 26(a),
or
''(B) the amount of the contributions to child
savings accounts of qualifying children of the taxpayer
for the taxable year to the extent such contributions
do not exceed $100 multiplied by the number of
qualifying children.
''(2) Limitation.--In no event shall the amount of the
increase under paragraph (1) exceed--
''(A) the aggregate amount of credits allowed by
this subpart in excess of the limitation imposed by
section 26(a), reduced by
''(B) any additional credits allowed by subsection
(d).
''(3) Coordination.--The credit under this subsection shall
not be taken into account in applying subsection (d) and
section 32(n) (relating to supplemental child credit).''
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 1999.

SEC. 103. TAX-FREE DISTRIBUTIONS FOR ELEMENTARY, SECONDARY, AND COLLEGE
EDUCATION.

(a) In General.--Section 408A(d)(5) (defining qualified special
purpose distribution) is amended to read as follows:
''(5) Qualified special purpose distribution.--For purposes
of this section--
''(A) In general.--The term 'qualified special
purpose distribution' means any of the following
distributions:
''(i) Distributions described in
subparagraph (F) of section 72(t)(2) (relating
to first home purchases).
''(ii) Distributions to the extent such
distributions do not exceed the qualified
education expenses of the taxpayer for the
taxable year.
''(B) Qualified education expenses.--
''(i) In general.--The term 'qualified
education expenses' means--
''(I) qualified higher education
expenses (as defined in section
72(t)(7)),
''(II) qualified elementary and
secondary education expenses, and
''(III) amounts paid or incurred
during the taxable year to purchase
tuition credits or certificates, or to
make contributions to an account, under
a qualified State tuition program (as
defined in section 529(b)) for the
benefit of the beneficiary of the
account, the beneficiary's spouse, or
any child (as defined in section
151(c)(3)) or grandchild of the
beneficiary or spouse.
''(ii) Limitation.--The aggregate amount
treated as qualified education expenses for any
taxable year shall not exceed an amount equal
to the excess (if any) of--
''(I) ____ percent of the fair
market value of the assets in the Roth
IRA as of the close of the calendar
year preceding the calendar year in
which the taxable year begins, over
''(II) distributions described in
subparagraph (F) of section 72(t)(2)
(relating to first home purchases) for
the taxable year.
''(C) Qualified elementary and secondary education
expenses.--
''(i) In general.--The term 'qualified
elementary and secondary education expenses'
means--
''(I) expenses for tuition, fees,
academic tutoring, special needs
services, books, supplies, computer
equipment (including related software
and services), and other equipment
which are incurred in connection with
the enrollment or attendance of the
designated beneficiary of the trust, or
of the child or grandchild of the
beneficiary of the account or
beneficiary's spouse, as an elementary
or secondary school student at a
public, private, or religious school,
or
''(II) expenses for room and board,
uniforms, transportation, and
supplementary items and services
(including extended day programs) which
are required or provided by a public,
private, or religious school in
connection with such enrollment or
attendance.
''(ii) Special rule for home-
schooling.--Such term shall include expenses
described in clause (i) required for education
provided for homeschooling if the requirements
of any applicable State or local law are met
with respect to such education.
''(iii) School.--The term 'school' means
any school which provides elementary education
or secondary education (kindergarten through
grade 12), as determined under State law.''
(b) Additional Tax Not To Apply to Education Expenses.--Section
72(t)(2) is amended by adding at the end the following new
subparagraph:
''(G) Certain education expenses in case of a roth
ira.--Distributions to an individual from a Roth IRA
which are described in subclause (II) or (III) of
section 408A(d)(5)(B)(i). Distributions shall not be
taken into account under the preceding sentence if such
distributions are described in subparagraphs (A), (C),
(D), (E), or (F) or to the extent paragraph (1) does
not apply to such distributions by reason of
subparagraph (B).
(c) Repeal of Education IRAs.--
(1) In general.--Section 530 (relating to education
individual retirement accounts) is repealed.
(2) Conforming amendments.--
(A) Section 25A(e) is amended to read as follows:
''(e) Election To Have Section Apply.--No credit shall be allowed
under subsection (a) for a taxable year with respect to the qualified
and tuition-related expenses of an individual unless the taxpayer
elects to have this section apply to the individual for the taxable
year.''
(B) Section 26(b)(2) is amended by striking
subparagraph (E) and by redesignating subparagraphs (F)
through (Q) as subparagraphs (E) through (P),
respectively.
(C) Section 72(e)(9) is amended to read as follows:
''(9) Extension of paragraph (2)(b) to qualified state
tuition programs.--Notwithstanding any other provision of this
subsection, paragraph (2)(B) shall apply to amounts received
under a qualified State tuition program (as defined in section
529(b)). The rule of paragraph (8)(B) shall apply for purposes
of this paragraph.''
(D) Section 135(c)(2)(C) is amended--
(i) by striking '', or to an education
individual retirement account (as defined in
section 530) on behalf of an account
beneficiary,'', and
(ii) by striking ''and education individual
retirement accounts'' in the heading thereof.
(E) Section 135(d)(2) is amended by striking ''by--
'' and all that follows and inserting ''by the amount
of such expenses which are taken into account in
determining the credit allowable to the taxpayer or any
other person under section 25A with respect to such
expenses.''
(F) Section 221(e)(2)(A) is amended by striking '',
135, or 530'' and inserting ''or 135''.
(G) Section 4973(a) is amended by inserting ''or''
at the end of paragraph (2), by striking ''or'' at the
end of paragraph (3), and by striking paragraph (4).
(H) Section 4973 is amended by striking subsection
(e) and by redesignating subsection (f) as subsection
(e).
(I) Section 4975(c) is amended by striking
paragraph (5).
(J) Section 4975(e)(1) is amended by inserting
''or'' at the end of subparagraph (D), by striking
subparagraph (E), and by redesignating subparagraph (F)
as subparagraph (E).
(K) Section 6693(a)(2) is amended by inserting
''and'' at the end of subparagraph (B), by striking '',
and'' at the end of subparagraph (C) and inserting a
period, and by striking subparagraph (D).
(L) The table of sections for part VIII of
subchapter F of chapter 1 is amended by striking the
item relating to section 530.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to contributions for taxable years beginning after
December 31, 1999 (and earnings allocable thereto).
(2) Rollovers from education iras to roth iras.--For
purposes of section 530(d)(5) of the Internal Revenue Code of
1986 (as in effect before its repeal by this section), any
amount received from an education individual retirement account
which is paid into a Roth IRA within the prescribed time shall
be treated as if it were paid into another education individual
retirement account.

TITLE II--EXPANSION OF AVAILABILITY OF IRAS

SEC. 201. INFLATION ADJUSTMENT FOR DEDUCTIBLE AMOUNT.

(a) In General.--Section 219 is amended by redesignating subsection
(h) as subsection (i) and by inserting after subsection (g) the
following new subsection:
''(h) Cost-of-Living Adjustments.--In the case of any taxable year
beginning in a calendar year after 1998, the $2,000 amount under
subsection (b)(1)(A) shall be increased by an amount equal to the
product of $2,000 and the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable year begins,
except that subparagraph (B) thereof shall be applied by substituting
'1998' for '1992'. If the amount to which $2,000 would be increased
under the preceding sentence is not a multiple of $500, such amount
shall be rounded to the next lower multiple of $500.''
(b) Conforming Amendments.--
(1) Section 408(a)(1) is amended by striking ''in excess of
$2,000 on behalf of any individual'' and inserting ''on behalf
of any individual in excess of the amount in effect for such
taxable year under section 219(b)(1)(A)''.
(2) Section 408(b)(2)(B) is amended by striking ''$2,000''
and inserting ''the dollar amount in effect under section
219(b)(1)(A)''.
(3) Section 408(b) is amended by striking ''$2,000'' in the
matter following paragraph (4) and inserting ''the dollar
amount in effect under section 219(b)(1)(A)''.
(4) Section 408(j) is amended by striking ''$2,000''.
(5) Section 408(p)(8) is amended by striking ''$2,000'' and
inserting ''the dollar amount in effect under section
219(b)(1)(A)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 1999.

SEC. 202. REPEAL OF ADJUSTED GROSS INCOME LIMITATIONS ON CONTRIBUTIONS
AND ROLLOVERS TO ROTH IRAS.

(a) In General.--Section 408A(c) is amended by striking paragraph
(3) and by redesignating paragraphs (4) through (7) as paragraphs (3)
through (6), respectively.
(b) Repeal of Nondeductible Contributions.--
(1) Subsection (f) of section 219 is amended by striking
paragraph (7).
(2) Paragraph (5) of section 408(d) is amended by striking
the last sentence.
(3) Section 408(o) is amended by adding at the end the
following new paragraph:
''(5) Termination.--This subsection shall not apply to any
designated nondeductible contribution for any taxable year
beginning after December 31, 1999.''
(4) Subsection (b) of section 4973 is amended by striking
the last sentence.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 1999.
Student:
Title II: Expansion of Availability of IRAs
- Provides for an inflation adjustment to the IRA deductible amount. Repeals the adjusted gross limitation on contributions and rollovers to Roth IRAs.