Charities and governments may fund whole classes of accounts
What the document says“The term `general funding contribution' means a contribution which--”
The section defines a general funding contribution as one made by an entity described in section 170(c)(1), other than a possession of the United States or its subdivision, or an Indian tribal government, or by an organization described in section 501(c)(3) and exempt under section 501(a), that names a qualified class of account beneficiaries to receive it. A qualified general contribution is the Secretary's payment of such a contribution to a beneficiary in that class, in an amount equal to the contribution divided by the number of beneficiaries in the class. A qualified class is all beneficiaries under 18 at the end of the year, or that group narrowed to named States or qualified geographic areas, or to named birth years. A qualified geographic area is one where at least 5,000 beneficiaries live and that the Secretary designates.
What the document actually says“The term `general funding contribution' means a contribution which--”
The term covers a gift into the system as a whole. The two tests that follow say who may give and how.
Governments, tribes and charities may give. The gift must name a group of children. The Secretary then splits it evenly among them.
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