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Creating Universal Savings Accounts: Tax-Free Growth and Withdrawals

This legislation establishes Universal Savings Accounts (USAs), a new savings vehicle available to individuals. Money deposited into these accounts grows and can be withdrawn completely tax-free, regardless of the purpose of the savings. This provides individuals with a flexible tool for building capital for any future need, subject to annual contribution limits.
Key points
Introduction of Universal Savings Accounts (USAs), where investment gains and all distributions are exempt from income tax.
The annual cash contribution limit starts at $10,000, potentially increasing up to $25,000 (plus inflation adjustments).
The account can be used for saving for any purpose.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1581
Sponsor: Sen. Cruz, Ted [R-TX]
Process start date: 2025-05-01
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Summarized by: gemini-3-pro-preview
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_S_1581.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-05-01.

What are the main provisions?

Key points include:

  • Introduction of Universal Savings Accounts (USAs), where investment gains and all distributions are exempt from income tax.
  • The annual cash contribution limit starts at $10,000, potentially increasing up to $25,000 (plus inflation adjustments).
  • The account can be used for saving for any purpose.
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 Sen. Cruz, Ted [R-TX].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

CATEGORIES

Taxes Economy