Ill STAT. 816 PUBLIC LAW 105-34—AUG. 5, 1997 beneficiary not later than the 60th day after the date of such payment or distribution. The preceding sentence shall not apply to any payment or distribution if it applied to any prior payment or distribution during the 12-month period ending on the date of the payment or distribution. "(6) CHANGE IN BENEFICIARY. —Any change in the beneficiary of an education individual retirement account shall not be treated as a distribution for purposes of paragraph (1) if the new beneficiary is a member of the family (as so defined) of the old beneficiary. "(7) SPECIAL RULES FOR DEATH AND DIVORCE.— Rules similar to the rules of paragraphs (7) and (8) of section 220(f) shall apply. "(e) TAX TREATMENT OF ACCOUNTS. — Rules similar to the rules of paragraphs (2) and (4) of section 408(e) shall apply to any education individual retirement account. "(f) COMMUNITY PROPERTY LAWS.—This section shall be applied without regard to any community property laws. "(g) CUSTODIAL ACCOUNTS. —For purposes of this section, a custodial account shall be treated as a trust if the assets of such account are held by a bank (as defined in section 408(n)) or another person who demonstrates, to the satisfaction of the Secretary, that the manner in which he will administer the account will be consistent with the requirements of this section, and if the custodial account would, except for the fact that it is not a trust, constitute an account described in subsection (b)(1). For purposes of this title, in the case of a custodial account treated as a trust by reason of the preceding sentence, the custodian of such account shall be treated as the trustee thereof. "(h) REPORTS. —The trustee of an education individual retirement account shall make such reports regarding such account to the Secretary and to the beneficiary of the account with respect to contributions, distributions, and such other matters as the Secretary may require. The reports required by this subsection shall be filed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required.". (b) TAX ON PROHIBITED TRANSACTIONS. — (1) IN GENERAL. —Paragraph (1) of section 4975(e) (relating to prohibited transactions) is amended by striking "or" at the end of subparagraph (D), by redesignating subparagraph (E) as subparagraph (F), and by inserting after subparagraph (D) the following new subparagraph: "(E) an education individual retirement account described in section 530, or". (2) SPECL\L RULE.— Subsection (c) of section 4975 is amended by adding at the end of subsection (c) the following new paragraph: "(5) SPECIAL RULE FOR EDUCATION INDIVIDUAL RETIREMENT ACCOUNTS.— An individual for whose benefit an education individual retirement account is established and any contributor to such account shall be exempt from the tax imposed by this section with respect to any transaction concerning such account (which would otherwise be taxable under this section) if section 530(d) applies with respect to such transaction.". (c) FAILURE TO PROVIDE REPORTS ON EDUCATION INDIVIDUAL RETIREMENT ACCOUNTS. —Paragraph (2) of section 6693(a) (relating to failure to provide reports on individual retirement accounts or
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