Section 1 Short title
This Act may be cited as the “Children’s Savings Accounts Offer Parents Plenty Of Reasons To Understand aNd Invest in Tuition Yearly Act” or the “CSA OPPORTUNITY Act”.
Children’s Savings Accounts Offer Parents Plenty Of Reasons To Understand aNd Invest in Tuition Yearly Act
A BILL
To amend the Social Security Act, the Food and Nutrition Act of 2008, and the Low-Income Home Energy Assistance Act of 1981 to require that the value of child’s savings accounts be disregarded for the purpose of determining eligibility to receive benefits under such Acts; and for other purposes.
Sec. 2 Definitions
In this Act:
Child’s savings account— The term “child’s savings account” means a trust created or organized exclusively for the purpose of paying the qualified expenses of only an individual who, when the trust is created or organized, has not attained 18 years of age, if the written governing instrument creating the trust contains the following requirements:
The trustee is a federally insured financial institution, or a State insured financial institution if a federally insured financial institution is not available.
The assets of the trust will be invested in accordance with the direction of the individual or of a parent or guardian of the individual, after consultation with the entity providing the initial contribution to the trust or, if applicable, a matching or other contribution for the individual.
The assets of the trust will not be commingled with other property except in a common trust fund or common investment fund.
Any amount in the trust that is attributable to an account seed or matched deposit may be paid or distributed from the trust only for the purpose of paying qualified expenses of the individual.
Qualified expenses— The term “qualified expenses” means, with respect to an individual, expenses that—
are incurred after the individual receives a secondary school diploma or its recognized equivalent; and
are—
postsecondary educational expenses (as defined in section 529 of the Internal Revenue Code of 1986) of the individual;
for the purchase of a first home by the individual; or
for the capitalization of a business owned by the individual.