Universal Savings Account Act of 2025
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
The Universal Savings Account Act of 2025 creates a new type of tax-advantaged savings account called a ‘Universal Savings Account.’ These accounts would allow individuals to contribute up to $25,000 annually (increasing each year), with earnings and distributions being tax-free, similar to a Roth IRA. The bill also introduces excise taxes on excess contributions, certain transactions involving these accounts, and reporting requirements for trustees, and establishes rules for account treatment upon death.
Key provisions
- Allows contributions of up to $10,000 in 2025, increasing annually for inflation up to a maximum of $25,000.
- Earnings and distributions from Universal Savings Accounts are tax-free.
- Imposes a federal excise tax on contributions exceeding the annual contribution limit.
- Establishes reporting requirements for account trustees.
- Defines rules for account treatment upon the death of an account holder.
- Allows qualified rollover contributions from other tax-advantaged accounts.
- Specifies requirements for the trust structure of Universal Savings Accounts, including restrictions on investments and commingling of assets.
Who is affected
- Individual taxpayers
- Financial institutions (banks and trustees)
- Tax professionals
Notable changes
- Creates a new tax-advantaged savings vehicle.
Bill text
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Sponsors
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2 on record
Primary sponsor
Cosponsor
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