Bill in Congress would transform ESA into 401Kids Account

US Representative Clay Shaw (R-Florida) has introduced HR 5314, the 401Kids Family Savings Act of 2006, which would rename and expand the Coverdell education savings account. The Coverdell ESA would become the 401Kids Account, and tax-free distributions could be used to fund a Roth IRA, pay first-time homebuyer costs, and pay for education expenses.

In addition, the bill would extend the federal exclusion for 529 plans and ESA/401Kids until December 31, 2015.
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