[Congressional Bills 110th Congress] [From the U.S. Government Publishing Office] [H.R. 590 Introduced in House (IH)] 110th CONGRESS 1st Session H. R. 590 To amend the Internal Revenue Code of 1986 to increase the annual contribution limit to Coverdell education savings accounts, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES January 19, 2007 Mr. Knollenberg introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to increase the annual contribution limit to Coverdell education savings accounts, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Student Financial Readiness Act of 2007''. SEC. 2. COVERDELL EDUCATION SAVINGS ACCOUNT IMPROVEMENTS. (a) Increase in Annual Contribution Limit to Coverdell Education Savings Accounts.--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''. (b) Contributions Not Allowed by Individuals Whose Adjusted Gross Income Exceeds Limitation.--So much of subsection (c) of section 530 of such Code as precedes paragraph (2) is amended to read as follows: ``(c) Contributions Not Allowed by Individuals Whose Adjusted Gross Income Exceeds Limitation.-- ``(1) In general.--No contribution may be made to any Coverdell education savings account by any individual during the taxable year if the modified adjusted gross income of such individual for such taxable year exceeds $150,000 (twice such amount in the case of a joint return).''. (c) Cost-of-Living Adjustment.--Subsection (b) of section 530 of such Code is amended by adding at the end the following new paragraph: ``(5) Cost-of-living adjustment.-- ``(A) In general.--In the case of any taxable year beginning in a calendar year after 2007, the dollar amount contained in paragraph (1)(A)(iii) and subsection (c)(1) shall both be increased by an amount equal to-- ``(i) such dollar amount, multiplied by ``(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting `calendar year 2005' for `calendar year 1992' in subparagraph (B) thereof. ``(B) Rounding.--If any increase under subparagraph (A) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.''. (d) Conforming Amendment.--Subparagraph (A) of section 4973(e)(1) of such Code is amended by striking ``$2,000'' and inserting ``the dollar amount in effect under section 530(b)(1)(A)(iii) for the taxable year''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2006. <all>