Bill > HR3186

This bill establishes Universal Savings Accounts (USAs), a new type of tax-advantaged savings account that allows individuals to contribute up to $10,000 annually in 2025, with the contribution limit increasing by $500 each year and potentially adjusting for inflation after 2025, up to a maximum of $25,000 per year. These accounts would be created as trusts with specific requirements, such as being established exclusively for an individual's benefit, having a bank or approved trustee, and prohibiting investments in life insurance contracts. Contributions to USAs would be made in cash and would be tax-exempt, meaning that distributions from the account would not be included in the account holder's gross income, with some exceptions for excess contributions. The bill allows for rollover contributions between Universal Savings Accounts and provides special rules for what happens to the account upon the death of the account holder, such as allowing a surviving spouse to inherit the account. The legislation also establishes penalties for excess contributions and requires trustees to report account details to the Internal Revenue Service. The provisions of this bill would take effect for taxable years beginning after December 31, 2024, creating a new flexible savings option for individuals outside of existing retirement and health savings account structures.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3186/all-info