Skip to main content
S 386 104th Congress Senate

A bill to amend the Internal Revenue Code of 1986 to provide for the tax-free treatment of education savings accounts established through certain State programs, and for other purposes.

Introduced: February 10, 1995 Introduced by: McConnell, Mitch Republican · Kentucky See on congress.gov
Taxation Charitable contributionsCharitiesChild supportCollege costs
More subjectsShow fewer subjects
Cost of living adjustmentsEconomics and Public FinanceEducationFamiliesFinance and Financial SectorGift taxGovernment Operations and PoliticsGovernment paperworkHigher educationIncome taxIndexing (Economic policy)Savings accountsTax deductionsTax exclusionTax exemption
Sign in to write a letter Sign in to watch
This bill died when the 104th Congress ended
It never became law before the 104th Congress (1995–1996) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 3 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Feb 10, 1995
Read twice and referred to the Committee on Finance.
Feb 10, 1995
Sponsor introductory remarks on measure. (CR S2494-2495)
Feb 10, 1995
Introduced in Senate
 Ask about this bill AI · grounded in the bill text

Have a question about what this bill does? Ask in plain English; the answer is drawn from the bill's actual text and official record, and it'll tell you when something isn't in the text rather than guess.

AI answers can be imperfect; always confirm against the full bill text.

 Latest action February 10, 1995

Read twice and referred to the Committee on Finance.

 Plain-English summary Congressional Research Service

Amends the Internal Revenue Code to exclude from gross income any qualified education savings account. Describes such account as a trust created pursuant to a State educational savings plan and used exclusively to pay the higher education expenses of the designated beneficiary. Declares such accounts to be exempt from tax.

Treats such State plans as tax-exempt organizations and treats contributions to such plans as charitable contributions.

Declares that contributions to such accounts are not subject to the gift tax.

Imposes penalty taxes in connection with reporting requirements or prohibited transactions associated with an account.

Excludes distributions from such accounts when determining support for dependents.

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
Cite this page click to expand
APA
U.S. Congress. (2026). S. 386: A bill to amend the Internal Revenue Code of 1986 to provide for the tax-free treatment of education savings accounts established through certain State programs, and for other purposes.. 104th Congress. Open America. https://openamerica.io/bill/104-S-386/
MLA
"S. 386: A bill to amend the Internal Revenue Code of 1986 to provide for the tax-free treatment of education savings accounts established through certain State programs, and for other purposes.." 104th Congress, 2026, Open America, https://openamerica.io/bill/104-S-386/.
Bluebook (legal)
S. 386, 104th Cong. (2026), https://openamerica.io/bill/104-S-386/.
Markdown link
[S. 386: A bill to amend the Internal Revenue Code of 1986 to provide for the tax-free treatment of education savings accounts established through certain State programs, and for other purposes.](https://openamerica.io/bill/104-S-386/)
Report a problem