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Title II — Further Clarification of Coverdell Education Savings Accounts

H.R. 5477 · 113th Congress · Sep 16, 2014 · Lineage

II Further Clarification of Coverdell Education Savings Accounts

Sec. 201 Allowance of home school expenses as qualified education expenses for purposes of a Coverdell Education Savings Account

(a)
In General— Paragraph (3) of section 530(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

“(C) Private school—For purposes of this section, the term ‘private school’ includes any home school that meets the requirements of State law applicable to such home schools, whether or not such school is deemed a private school for purposes of State law.”

(b)
Effective Date— The amendment made by this section shall apply to taxable years beginning after December 31, 2013.

Sec. 202 Elimination of Coverdell Education Savings Account contribution limitation

(a)
In general— Subparagraph (A) of section 530(b)(1) of the Internal Revenue Code of 1986 is amended by inserting “or” at the end of clause (i), by striking “or” at the end of clause (ii) and inserting a period, and by striking clause (iii).
(b)
Prohibition on excess contributions— Subsection (b) of section 530 of such Code is amended by adding at the end the following new paragraph:

“(5) Prohibition on excess contributions—A program shall not be treated as a Coverdell education savings account unless it provides adequate safeguards to prevent contributions on behalf of a designated beneficiary in excess of those necessary to provide for the qualified education expenses of the beneficiary.”

(c)
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2013.