3.0.0 1581 2026-06-12T15:20:02Z 2026-06-12T15:20:02Z Senate S S 2025-05-01 119 https://www.congress.gov/bill/119th-congress/senate-bill/1581 ssfi00 Finance Committee Senate Standing Referred To 2025-05-01T18:01:11Z Universal Savings Account Act of 2025 119 3186 HR 2025-05-05 Referred to the House Committee on Ways and Means. Identical bill CRS 2025-05-01 ssfi00 Finance Committee Senate Read twice and referred to the Committee on Finance. IntroReferral 2025-05-01 Introduced in Senate IntroReferral 10000 9 Library of Congress C001098 Sen. Cruz, Ted [R-TX] Ted Cruz R TX N J000312 Sen. Justice, James C. [R-WV] James Justice R WV C. 2025-05-08 False Taxation Taxation 2025-06-04T15:20:56Z 00 2025-05-01 Introduced in Senate 2026-06-12T15:18:27Z Universal Savings Account Act of 2025

This bill establishes Universal Savings Accounts, which are tax-advantaged savings accounts that allow contributions up to a certain amount, exempt earnings and distributions from federal income taxes, and allow distributions to be used for any purpose. (Conditions and exceptions apply.)

Specifically, the bill allows cash contributions to a Universal Savings Account of up to $10,000 in 2025 (maximum base contribution), excluding qualified amounts rolled over from another tax-advantaged account (e.g., individual retirement account). The maximum base contribution amount is increased by $500 each year beginning in 2026 and adjusted annually for inflation, up to a total maximum contribution of $25,000 (also adjusted annually for inflation beginning in 2026).

Under the bill, earnings and distributions from a Universal Savings Account are excluded from gross income for federal tax purposes and, thus, are not subject to federal income taxes (similar to the federal tax treatment of distributions from a Roth individual retirement account). (Some exceptions apply.)

Further, distributions from such accounts are not restricted and may be used for any purpose (unlike other types of tax-advantaged accounts currently available).

The bill also imposes 

  • a federal excise tax on contributions to a Universal Savings Account in excess of the applicable contribution limit,
  • a federal excise tax on certain transactions involving a Universal Savings Account and disqualified persons,
  • certain reporting requirements on Universal Savings Account trustees, and
  • a federal excise tax for failing to meet such reporting requirements.
]]> Universal Savings Account Act of 2025 Display Title 45 Universal Savings Account Act of 2025 2025-05-17T02:53:20Z Short Title(s) as Introduced 101 Universal Savings Account Act of 2025 2025-05-17T02:53:19Z Introduced in Senate IS Official Title as Introduced 6 A bill to amend the Internal Revenue Code of 1986 to create Universal Savings Accounts. 2025-05-17T02:48:23Z Introduced in Senate IS Introduced in Senate 2025-05-01T04:00:00Z https://www.govinfo.gov/content/pkg/BILLS-119s1581is/xml/BILLS-119s1581is.xml 2025-05-01 Read twice and referred to the Committee on Finance. text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.