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HR 3186119th CongressIntroduced
Universal Savings Account Act of 2025
Introduced: Oct 29, 2025
Economy & TaxesFinancial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Universal Savings Account Act of 2025 establishes a new tax-advantaged savings vehicle under the Internal Revenue Code, permitting annual contributions up to $10,000 with automatic inflation adjustments and a $25,000 cap, featuring tax-exempt growth and generally tax-free distributions administered by qualified financial institutions.
Key Points
- 1Creates Universal Savings Accounts exempt from federal income tax with initial annual contribution limits of $10,000 increasing by $500 yearly until reaching a $25,000 maximum subject to inflation adjustments.
- 2Distributions are generally excluded from gross income except for net income attributable to excess contributions which remains fully taxable to the account holder.
- 3Requires accounts to be administered by banks or IRS-approved trustees with mandatory reporting requirements for contributions distributions and account activity to both the IRS and beneficiaries.
Impact Areas
Individual taxpayers across all income levelsBanks and financial institutions serving as account trusteesFederal tax revenue through expanded tax-deferred savings options
Generated by legislative-analyst-pro on Nov 9, 2025