Bill > S1718

This bill creates a new type of investment account called an Invest America Account, designed to help individuals save and invest money with specific tax advantages. The account allows individuals born after July 4, 2026, who are U.S. citizens with at least one U.S. citizen parent, to receive a $1,000 federal contribution upon certification. Contributions to the account are limited to $5,000 annually, with this limit adjusted for inflation after 2026, and can only be invested in mutual funds or exchange-traded funds that track the Standard and Poor's 500 stock market index. Notably, distributions from the account will be taxed at the same rate as net capital gains, and no withdrawals are permitted before the account beneficiary turns 18, except for qualified rollover contributions. The Secretary of the Treasury will automatically establish an account for eligible individuals who do not create one themselves, and the account providers will be selected based on criteria like low fees and investment performance. The bill aims to provide a structured, government-supported method for long-term investment and wealth building for young Americans, with built-in protections and tax incentives to encourage participation.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1718/all-info