S1581Referred to Committee

Universal Savings Account Act of 2025

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Introduced
In Committee
3
Passed One Chamber
4
Passed Both
5
Signed into Law
119th
Congress
2025-05-01
Introduced
1
Cosponsors
S
ⓘ
Type

Sponsor

Ted Cruz
Ted Cruz
Republican · TX · Senator
Votes with party: 75.0% (843 recorded votes)
Top industries funding sponsor:
  • Conservative Groups$464k

Full profile: /officials/C001098

Source: Congress.gov · FEC

Cosponsors (1)

Members who have signed on to support this bill since introduction. Source: Congress.gov.

1 cosponsor on record at Congress.gov. The named list is syncing into Govwatch and will appear here shortly — view on Congress.gov in the meantime.

Latest Action

The most recent step in the bill's legislative path. Committee Activity below shows referrals and reports; the full action-by-action history including floor proceedings lives at Congress.gov →

Read twice and referred to the Committee on Finance.

2025-05-01

Source: Congress.gov

Committee Activity

Currently in

Plain-English Summary

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.

Plain-English rewrite of the Congressional Research Service summary published on Congress.gov. Cached and reviewed.

Subjects

Taxation
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