“A bill to amend the Internal Revenue Code of 1986 to create invest America accounts.”
No CRS summary available for this bill.
This section establishes Invest America accounts (new IRC §530A) as tax-exempt trusts created for the exclusive benefit of a designated individual, permitting annual cash contributions up to $5,000 (indexed for inflation after 2026), with assets held by a qualified trustee and invested solely in mutual funds or exchange-traded funds tracking the S&P 500 index. No distributions are permitted before the beneficiary reaches age 18 (except qualified rollovers), account balances are nonforfeitable, and post-18 distributions are includible in gross income under annuity rules (IRC §72) but characterized as net capital gain (new IRC §1(h)(12)). The section also (1) treats qualifying custodial accounts and annuities as trusts, (2) applies HSA-like rules upon the beneficiary's death, (3) authorizes rollovers from the Invest America Act or trustee-to-trustee transfers, and (4) imposes a 6% excise tax on excess contributions (amending IRC §4973(a)).
This section directs the Secretary of the Treasury to contribute $1,000 to an invest America account for each eligible individual—defined as a U.S. citizen born after July 4, 2026, with at least one U.S. citizen parent—as soon as practicable after certification by the Secretary in consultation with the Commissioner of Social Security (no later than six months after birth). If an eligible individual lacks an account, the Secretary must establish one through a competitively selected low-fee provider. The section excludes these contributions from gross income under new IRC §139J (effective for taxable years beginning after December 31, 2024) and appropriates such sums as necessary for the payments.