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S 1581119th 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 tax-advantaged savings vehicles with annual contribution limits starting at $10,000 in 2025, increasing to $25,000 by 2033, featuring tax-exempt growth, unrestricted tax-free distributions, and specific trust requirements administered by financial institutions under IRS oversight.
Key Points
- 1Creates Universal Savings Accounts exempt from taxation on earnings except for unrelated business income tax under section 511.
- 2Sets annual contribution limits beginning at $10,000 in 2025 with $500 yearly increases capped at $25,000 plus inflation adjustments after 2025.
- 3Permits tax-free distributions for any purpose while imposing penalties for excess contributions and requiring trustee reporting to the IRS.
Impact Areas
Individual taxpayers saving for various financial goalsBanks and financial institutions administering the accountsFederal tax revenue through foregone income from account growth
Generated by legislative-analyst-v1 on Nov 7, 2025