Universal Savings Account Act of 2025
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The Universal Savings Account Act of 2025 creates a new type of savings account called a ‘Universal Savings Account’ (USA). These accounts would be exempt from taxation, with contribution limits that increase annually based on inflation. The bill establishes specific requirements for these accounts, including trustee qualifications and restrictions on investments. It also modifies existing tax rules to account for excess contributions and prohibited transactions related to USAs, and includes provisions for reporting and treatment upon death of the account holder.
Key provisions
- Establishes ‘Universal Savings Accounts’ (USAs) exempt from taxation.
- Sets annual contribution limits that increase with inflation.
- Specifies trustee requirements, including bank or qualified individual oversight.
- Limits investments within USAs to cash and certain common trust funds.
- Defines a ‘qualified rollover contribution’ from existing retirement accounts.
- Addresses the taxation of excess contributions to USAs.
- Provides for the treatment of USAs upon the death of the account holder.
- Modifies existing tax rules regarding prohibited transactions involving USAs.
Who is affected
- Individual taxpayers
- Banks and financial institutions
- Trustees
- Retirement account holders
- Taxpayers
Notable changes
Bill text
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Sponsors
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2 on record
Primary sponsor
Cosponsor
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