Bill > HR3407

This bill establishes the Money Accounts for Growth and Advancement (MAGA) Act, which creates a new type of tax-exempt investment account for individuals under 18 years old. The account allows contributions up to $5,000 annually (with future cost-of-living adjustments), and can only be invested in specific, low-fee U.S. equity index funds. Contributions are restricted until January 2026 and are limited to cash deposits for beneficiaries under 18. Distributions before age 18 are heavily restricted, and after age 18, withdrawals are limited. The account can be used for qualified expenses like higher education, post-secondary credentialing, small business loans, and first-time home purchases. Distributions for qualified expenses will be taxed at the net capital gains rate, while other unauthorized distributions will be subject to income tax and an additional 10% tax for beneficiaries under 30. The bill also includes a pilot program that will automatically establish a MAGA account with a $1,000 credit for eligible children born between 2025 and 2028, with provisions for parents to opt-out and penalties for fraudulent claims. The accounts will automatically terminate when the beneficiary turns 31, and multiple accounts for the same beneficiary are prohibited.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3407/all-info