GAI18379 S.L.C.
115
TH
CONGRESS 2
D
S
ESSION
S.
ll
To amend the Internal Revenue Code of 1986 to establish Lifelong Learning and Training Account programs.
IN THE SENATE OF THE UNITED STATES
llllllllll
Mr. W
ARNER
(for himself and Mr. C
OONS
) introduced the following bill; which was read twice and referred to the Committee on
llllllllll
A BILL
To amend the Internal Revenue Code of 1986 to establish Lifelong Learning and Training Account programs.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Lifelong Learning and
4
Training Account Act of 2018’’.
5
SEC. 2. LIFELONG LEARNING AND TRAINING ACCOUNT
6
PROGRAMS.
7
(a) I
N
G
ENERAL
.—Part VIII of subchapter E of
8
chapter 1 of the Internal Revenue Code of 1986 is amend-
9
ed by inserting after section 530 the following new section:
10
2
GAI18379 S.L.C.
‘‘SEC. 531. LIFELONG LEARNING AND TRAINING ACCOUNT
1
PROGRAMS.
2
‘‘(a) I
N
G
ENERAL
.—A Lifelong Learning and Train-
3
ing Account program shall be exempt from taxation under
4
this subtitle. Notwithstanding the preceding sentence,
5
such program shall be subject to the taxes imposed by sec-
6
tion 511.
7
‘‘(b) L
IFELONG
L
EARNING AND
T
RAINING
A
CCOUNT
8
P
ROGRAM
.—For purposes of this section—
9
‘‘(1) I
N GENERAL
.—The term ‘Lifelong Learn-
10
ing and Training Account program’ means a pro-
11
gram established and maintained by a State or
12
agency or instrumentality thereof—
13
‘‘(A) under which the designated bene-
14
ficiary of the account or their employer may
15
make contributions to an account which is es-
16
tablished for the purpose of meeting the quali-
17
fied training expenditures of such beneficiary,
18
and
19
‘‘(B) which meets the other requirements
20
of this section.
21
‘‘(2) Q
UALIFIED TRUST
.—Except to the extent
22
provided in regulations, a program shall not be
23
treated as a Lifelong Learning and Training Ac-
24
count program unless such program provides that
25
amounts are held in a qualified trust and such pro-
26
3
GAI18379 S.L.C.
gram has received a ruling or determination by the
1
Secretary that such program meets the applicable
2
requirements for a Lifelong Learning and Training
3
Account program. For purposes of the preceding
4
sentence, the term ‘qualified trust’ means a trust
5
which is created or organized in the United States
6
for the exclusive benefit of designated beneficiaries
7
and with respect to which the requirements of para-
8
graphs (2) and (5) of section 408(a) are met.
9
‘‘(3) R
EQUIREMENTS
.—
10
‘‘(A) I
N GENERAL
.—A program shall not
11
be treated as a Lifelong Learning and Training
12
Account program unless it provides—
13
‘‘(i) that contributions may only be
14
made in cash,
15
‘‘(ii) separate accounting for each des-
16
ignated beneficiary,
17
‘‘(iii) that no interest in the program
18
or any portion thereof may be used as se-
19
curity for a loan,
20
‘‘(iv) that no contributions may be
21
made on behalf of a designated bene-
22
ficiary—
23
‘‘(I) in excess of $2,000 during
24
any calendar year,
25
Reward Your Curiosity
Everything you want to read.
Anytime. Anywhere. Any device.
No Commitment. Cancel anytime.
