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Universal Savings Accounts: Tax-free growth and withdrawals for individuals.

This bill establishes a new type of savings vehicle, the Universal Savings Account (USA), allowing individuals to save money with tax-exempt growth. Contributions are subject to an annual limit, but distributions are not includible in gross income, allowing for tax-free withdrawals. These changes apply to tax years beginning after December 31, 2024.
Key points
New USA Account: Investment earnings within this account are exempt from income tax.
Contribution Limit: The maximum annual cash contribution to all USA accounts for one individual starts at $10,000, subject to cost-of-living adjustments, with a maximum cap of $25,000 (also adjusted for inflation).
Tax-Free Withdrawals: Distributions from the account are not includible in gross income.
Penalties for Excess Contributions: Contributions exceeding the annual limit are subject to an excise tax, unless the excess amount and related net income are distributed before the tax return due date.
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Introduced
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Additional Information
Print number: 119_HR_3186
Sponsor: Rep. Harshbarger, Diana [R-TN-1]
Process start date: 2025-05-05
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Universal Savings Account Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_3186.

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 2025-05-05.

What are the main provisions?

Key points include:

  • New USA Account: Investment earnings within this account are exempt from income tax.
  • Contribution Limit: The maximum annual cash contribution to all USA accounts for one individual starts at $10,000, subject to cost-of-living adjustments, with a maximum cap of $25,000 (also adjusted for inflation).
  • Tax-Free Withdrawals: Distributions from the account are not includible in gross income.
  • Penalties for Excess Contributions: Contributions exceeding the annual limit are subject to an excise tax, unless the excess amount and related net income are distributed before the tax return due date.
What is the specific legal status?

The current status is Introduced.

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 2025-12-24.

CATEGORIES

Taxes Economy