H.R. 3186: Universal Savings Account Act of 2025

119th Congress · introduced 2025-05-05 · Taxation · Latest: Referred to the House Committee on Ways and Means.

federal

Official title

Universal Savings Account Act of 2025

Plain 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.

Congressional Research Service summary (Introduced in House), quoted unchanged (nonpartisan). Read the source.

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What does this mean? (plain words)

Official text

Universal Savings Account Act of 2025

Source: Congressional Research Service summary (Introduced in House)

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Officials and money

Sponsor: Rep. Harshbarger, Diana [R-TN-1] · 1 cosponsors

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Words on this page, explained (2)

Bill: A proposed law. It becomes law only if it passes the legislature and is signed by the president or governor (or a veto is overridden).
Exemption: A rule that removes certain people, property or activities from a tax or requirement.

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Sources

Congressional Research Service summary (Introduced in House)
Congress.gov
Data: GovInfo BILLSTATUS bulk data (Library of Congress), BILLSTATUS-119hr3186.xml <https://www.govinfo.gov/bulkdata/BILLSTATUS/119/hr>

Record fed-us-cong119-hr3186 · catalog fed-us-congress-bills-cong119 · updated 2026-11-03 by psicol fed-bills