A bill to amend the Internal Revenue Code of 1954 to provide for individual education accounts, and for other purposes.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to allow an income tax deduction for cash and other personal property contributions to a savings account created or organized exclusively for the purpose of paying the higher or vocational educational expenses of the taxpayer or the taxpayer's spouse, child, grandchild, or ward. Limits the amount of such deduction to $2,000 per year ($2,250 in the case of a joint return). Excludes such accounts from taxation. Excludes distributions from such accounts so long as such distributions are used to defray the beneficiary's tuition, fees, books and supplies, and reasonable living expenses. Specifies sanctions for the use of account funds for other than such educational expenses.…