Section 1 Short title
This Act may be cited as the “Allocating for Children's Education Act” or the “ACE Act”.
Allocating for Children's Education Act
A BILL
To amend the Internal Revenue Code of 1986 to increase the contribution limit for Coverdell education savings accounts from $2,000 to $5,000, and for other purposes.
Sec. 2 Coverdell account contribution limitation increase
In general— Clause (iii) of section 530(b)(1)(A) of the Internal Revenue Code of 1986 is amended by striking “$2,000” and inserting “$5,000”.
Conforming amendment— Subparagraph (A) of section 4973(e)(1) of the Internal Revenue Code of 1986 is amended by striking “$2,000” and inserting “$5,000”.
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Sec. 3 Inclusion of athletic equipment in qualified elementary and secondary education expenses
In general— Clause (i) of section 530(b)(3)(A) of the Internal Revenue Code of 1986 is amended by striking “other equipment” and inserting “other equipment (including athletic equipment)”.
Effective date— The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.