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Universal Savings Accounts: Tax-Free Growth and Withdrawals Up to $10,000 Annually

This legislation establishes Universal Savings Accounts (USAs), a new tool allowing individuals to save money with tax-free growth and tax-free withdrawals for any purpose. Citizens can contribute up to $10,000 annually (indexed for inflation), providing a highly flexible way to save without the restrictions typically found in retirement or education accounts. These changes take effect starting in the 2025 tax year.
Key points
Creation of Universal Savings Accounts (USAs) where investment earnings and withdrawals are entirely exempt from income tax.
The annual cash contribution limit is $10,000, which will be adjusted for cost-of-living after 2025.
Funds can be withdrawn at any time for any reason without incurring taxes or penalties, offering maximum financial flexibility.
High-income earners (e.g., married couples earning over $400,000) will face a reduced contribution limit.
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Additional Information
Print number: 118_HR_9010
Sponsor: Rep. Harshbarger, Diana [R-TN-1]
Process start date: 2024-07-11
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Universal Savings Account Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9010.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-07-11.

What are the main provisions?

Key points include:

  • Creation of Universal Savings Accounts (USAs) where investment earnings and withdrawals are entirely exempt from income tax.
  • The annual cash contribution limit is $10,000, which will be adjusted for cost-of-living after 2025.
  • Funds can be withdrawn at any time for any reason without incurring taxes or penalties, offering maximum financial flexibility.
  • High-income earners (e.g., married couples earning over $400,000) will face a reduced contribution limit.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Harshbarger, Diana [R-TN-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Economy