Education Savings Account Act of 1985

[AI summary unavailable — showing source text] Education Savings Account Act of 1985 - Amends the Internal Revenue Code to allow an individual taxpayer an income tax deduction for contributions to a savings account established to pay the educational expenses (tuition, supplies, meals, and lodging) of individuals who have not attained the age of 35 at the time the account is established. Permits such payments of educational expenses to be made to an institution of higher education or a vocational school. Sets forth certain additional criteria an education savings account must meet in order for contributions to the account to qualify for this tax treatment. Prohibits an individual from being the beneficiary of more than one account during any calendar year. Requires the trustee of the account to transfer five percent of the amount of the net income of the account for any calendar year to the State student incentive grant program of any State designated by the terms of the instrument of the account. Requires any amounts paid out of an education savings account to be included in the gross income of the payee or distributee, unless such amounts are used to pay the educational expenses incurred by the individual for whose benefit the…