“A bill to amend the Internal Revenue Code of 1986 to create Universal Savings Accounts.”
No CRS summary available for this bill.
This section establishes Universal Savings Accounts as tax-exempt trusts designated for the exclusive benefit of an individual, allowing annual cash contributions up to $10,000—increasing by $500 for each calendar year after 2024 to a $25,000 cap (both subject to cost-of-living adjustment after 2025)—with tax-free earnings and distributions (except net income attributable to excess contributions). The section permits qualified rollovers from one account to another within 60 days; treats custodial accounts meeting specified requirements as trusts; requires annual reporting by trustees to the Secretary and beneficiaries; provides for spousal treatment of the account upon the account holder's death; and imposes an excise tax on excess contributions (via amendment to IRC §4973).