Read twice and referred to the Committee on Finance.
Creates a new federal tax-preferred savings vehicle called a Universal Savings Account (USA). USA trusts or custodial accounts are tax-exempt, accept cash contributions up to an annual limit that grows over time (initial formula starts at $10,000 plus $500 per year, capped at $25,000 with inflation adjustments), allow tax-free distributions generally, permit 60-day rollovers, and include trustee, reporting, excess-contribution, prohibited-transaction, and death-treatment rules.
Progressives worry about regressivity and calls for low-income targeting.
Relative to its intended legislative type, this bill establishes a substantive tax-law change by creating a new Universal Savings Account and adds the standard statutory components for such an account, but contains drafting inconsistencies and omissions that impede clear implementation.
Creates a new federal tax-preferred savings vehicle called a Universal Savings Account (USA).
USA trusts or custodial accounts are tax-exempt, accept cash contributions up to an annual limit that grows over time (initial formula starts at $10,000 plus $500 per year, capped at $25,000 with inflation adjustments), allow tax-free distributions generally, permit 60-day rollovers, and include trustee, reporting, excess-contribution, prohibited-transaction, and death-treatment rules.
The bill amends sections 4973, 4975, 6693, and related Internal Revenue Code provisions and applies to taxable years beginning after December 31, 2024.
Technocratic and broadly appealing subject but material fiscal cost, absence of offsets, and no sunset reduce standalone enactment prospects.
Relative to its intended legislative type, this bill establishes a substantive tax-law change by creating a new Universal Savings Account and adds the standard statutory components for such an account, but contains drafting inconsistencies and omissions that impede clear implementation.
Progressives worry about regressivity and calls for low-income targeting.
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives worry about regressivity and calls for low-income targeting.
Supports the goal of increasing individual savings but is cautious.
Likely to worry the tax advantage will disproportionately help higher-income households and reduce federal revenue unless paired with targeting or offsets.
Views the proposal pragmatically: it encourages private saving and is administratively straightforward, but needs fiscal offsets and clear implementation rules.
Support will hinge on cost estimates and anti-abuse procedures.
Mixed-to-skeptical: likes policies that promote private saving, but is concerned about expanding tax expenditures and federal regulation.
Likely to demand revenue neutrality and simplified rules to avoid new bureaucracy.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technocratic and broadly appealing subject but material fiscal cost, absence of offsets, and no sunset reduce standalone enactment prospects.
The bill has not accumulated any surfaced votes yet.
Progressives worry about regressivity and calls for low-income targeting.
Technocratic and broadly appealing subject but material fiscal cost, absence of offsets, and no sunset reduce standalone enactment prospect…
Relative to its intended legislative type, this bill establishes a substantive tax-law change by creating a new Universal Savings Account and adds the standard statutory components for such an account, but contains draf…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.