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 children’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:
Children’s savings account program— The term children’s savings account program refers to a program created or organized by a State, local, or Federal Government, 501(c)(3) nonprofit organization, a school district, or a college or university for the purpose of creating children’s savings accounts.
Children’s savings account— The term children’s savings account means a savings or investment account or trust created as part of a children’s savings account program exclusively for the purpose of paying the qualified expenses of only individuals, who, when the account is created, have not attained 18 years of age, provided that it has the following requirements:
If a savings or investment account is created—
the account is held in a federally insured financial institution, or a State-insured financial institution if a federally insured financial institution is not available, or in an investment account by a custodian or third-party owner on behalf of the individuals, if the custodian or third-party owner is a State, local, or Federal Government, 501(c)(3) nonprofit organization, a school district, or a college or university,
the assets of the account will not be commingled with other property except in a common children’s savings account, trust fund, or other common investment fund, and
any amount in the account that is attributable to a seed deposit, matched deposit, or other incentive provided by the children’s savings account program may be paid or distributed from the account only for the purpose of paying qualified expenses of the individual.
If a trust is created or organized, the written governing instrument creating the trust contains the following requirements:
The trust is created on behalf of the individuals, and the trustee is a State, local, or Federal Government, 501(c)(3) nonprofit organization, a school district, or a college or university.
The assets of the trust will be invested in accordance with the direction of the trustee.
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 a seed deposit, matched deposit, or other children’s savings account program incentive 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
for—
postsecondary educational expenses (as defined in section 529 of the Internal Revenue Code of 1986) of the individual,
the purchase of a first home by the individual, or
the capitalization of a business owned by the individual.