To amend the Internal Revenue Code of 1986 to expand access to Coverdell education savings accounts.

August 2, 2012

Mr. GARDNER (for himself, Mrs. MYRICK, Mr. PAUL, Mr. GRIFFIN of Arkansas, Mr. KELLY, Mr. POLIS, and Mr. LONG) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to expand access to Coverdell education savings accounts.

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 ‘Making College Affordable Act of 2012’.

SEC. 2. EXPANSION OF COVERDELL EDUCATION SAVINGS ACCOUNTS.

(a) Increase in Age Limitation of Beneficiary After Which Contributions to Account Cannot Be Made- Clause (ii) of section 530(b)(1)(A) of the Internal Revenue Code of 1986 is amended by striking ‘age 18’ and inserting ‘age 26’.

(b) Increase in Annual Dollar Limitation on Contributions to Account-

(1) IN GENERAL- Clause (iii) of section 530(b)(1)(A) of such Code is amended by striking ‘$2,000’ and inserting ‘$10,000’.

(2) INFLATION ADJUSTMENT- Subsection (b) of section 530 of such Code is amended by adding at the end the following new paragraph:

‘(5) INFLATION ADJUSTMENT-

‘(A) IN GENERAL- In the case of any taxable year beginning in a calendar year after 2012, the dollar amount in paragraph (1)(A)(iii) shall 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, determined by substituting ‘calendar year 2011’ for ‘calendar year 1992’ in subparagraph (B) thereof.

‘(B) ROUNDING RULE- If any increase determined under subparagraph (A) is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.’.

(c) Effective Dates-

(1) INCREASE IN AGE LIMITATION- The amendments made by subsection (a) shall apply to contributions made after the date of the enactment of this Act.

(2) INCREASE IN ANNUAL DOLLAR LIMITATION ON CONTRIBUTIONS- The amendments made by subsection (b) shall apply to contributions made in taxable years ending after the date of the enactment of this Act.