Sec. 4. AO accounts
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The Executive Director shall establish in the American Opportunity Fund an account (to be known as an American Opportunity account or an AO account ) for each eligible individual certified under subsection (b). Each such account shall be identified to its account holder by means of a unique personal identifier currently recognized by the Internal Revenue Service and shall remain in the American Opportunity Fund. The balance in an account holder’s AO account at any time is the excess of— the sum of— all deposits made into the American Opportunity Fund and credited to the account under paragraph (3); and the total amount of allocations made to and reductions made in the account pursuant to paragraph (4); over the amounts paid out of the account with respect to such individual under subsection (c).
Pursuant to regulations which shall be prescribed by the Executive Director, the Executive Director shall credit to each AO account the amounts paid into the American Opportunity Fund under section 3(d) which are attributable to the account holder of such account. The Executive Director shall allocate to each AO account an amount equal to the net earnings and net losses from each investment of sums in the American Opportunity Fund which are attributable, on a pro rata basis, to sums credited to such account, reduced by an appropriate share of the administrative expenses paid out of the net earnings, as determined by the Executive Director.
For purposes of this title— The term eligible individual means any individual who— was born after December 31, 2005; has not yet attained the age of 18 years; and has a valid, unique, Federal Government issued identification number recognized by the Internal Revenue Service. On any date after December 31, 2021, on which an eligible individual is issued a social security account number under section 203(c)(2) of the Social Security Act, the Commissioner of Social Security shall certify to the Executive Director and the Secretary of the Treasury the name of, and social security number issued to, such eligible individual.
In the case of an eligible individual who is not certified under subparagraph (A), such individual may request the establishment an AO account under this subparagraph by application to the Executive Director, and the Executive Director shall certify such individual under this subparagraph. Except as otherwise provided in this paragraph, no amount may be distributed from an AO account before the date on which the account holder attains the age of 18. Subparagraph
(A)shall not apply to amounts paid for qualified tuition and related expenses (as defined in section 25A(f)(1) of the Internal Revenue Code of 1986) of the account holder if the account holder is an eligible student (as defined in section 25A(b)(3) of such Code) with respect to such expenses. The Secretary, in consultation with the American Opportunity Fund Advisory Board, may by regulations provide for a higher age limitation with respects to distributions relating to certain categories of qualified expenses if the Secretary determines that such higher age limitation is appropriate. No amount may be distributed from an AO account unless the account holder establishes, under rules established by the Executive Director in consultation with the American Opportunity Fund Advisory Board, that such amount shall be used for a qualified expense. For purposes of this subsection— The term qualified expense means expenses for any of the following: Education of the account holder at— an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )); or an area career and technical education school (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 ( 20 U.S.C. 2302 )). Ownership of a home by the account holder. Any expenses paid or incurred on or after the date on which the account holder attains age 59 ½ . Any other investment in financial assets or personal capital that provides long-term gains to wages and wealth, as established under regulations promulgated by the Secretary, in consultation with the Executive Director and the American Opportunity Fund Advisory Board. Such term shall not include any expense described in clause
(i)which is paid to a person who does not meet such standards as are prescribed by the Secretary, in consultation with the Executive Director and the American Opportunity Fund Advisory Board. For purposes of this subsection, the term American Opportunity Fund Advisory Board means an advisory board established by the Secretary consisting of individuals with expertise in savings and asset-building, home financing, education financing, consumer financial protection, and such other areas as the Secretary may determine appropriate.
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