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New Tax-Exempt Savings Accounts (MAGA) for Children and $1,000 Credit.

This law establishes a new type of savings account (MAGA Account) specifically for children under age 8, with an annual contribution limit of $5,000. Funds must be invested in low-fee index funds tracking United States equities. Earnings withdrawn for qualified expenses (higher education, first-time home purchase, small business loans) are taxed as net capital gains. Furthermore, parents of eligible children born between 2025 and 2028 will receive a one-time $1,000 tax credit deposited directly into the child's MAGA account.
Key points
Creates MAGA savings accounts for children, requiring establishment before the child turns 8 years old.
Annual contributions are capped at $5,000 and must be invested in low-cost US equity index funds.
Investment earnings withdrawn for qualified purposes are taxed as net capital gains.
Introduces a one-time $1,000 tax credit for children born 2025-2028, paid directly into the child's account.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_3407
Sponsor: Rep. Moore, Blake D. [R-UT-1]
Process start date: 2025-05-14
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Summarized by: gemini-3-pro-preview
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Money Accounts for Growth and Advancement Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_3407.

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 2025-05-14.

What are the main provisions?

Key points include:

  • Creates MAGA savings accounts for children, requiring establishment before the child turns 8 years old.
  • Annual contributions are capped at $5,000 and must be invested in low-cost US equity index funds.
  • Investment earnings withdrawn for qualified purposes are taxed as net capital gains.
  • Introduces a one-time $1,000 tax credit for children born 2025-2028, paid directly into the child's account.
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. Moore, Blake D. [R-UT-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 Family Economy