Universal Savings Account Act of 2025

Summary

Creates a new tax-advantaged account type called a "Universal Savings Account" and adds those accounts into several existing Internal Revenue Code excise-tax, prohibited-transaction, and reporting provisions. The bill makes Universal Savings Accounts subject to excess-contribution rules, treats prohibited transactions involving these accounts as taxable, and requires failure-to-file/report penalties to apply to their required reporting. The changes add the new account part to Subchapter F of the tax code, adjust sections that govern excess contributions, prohibited transactions, and failure-to-file excise taxes, and take effect for taxable years beginning after December 31, 2024.

• Creates a new "Universal Savings Account" category in Subchapter F of the Internal Revenue Code.
• Subjects these accounts to existing excess-contribution excise-tax rules and defines excess contributions with carryforward and corrective-distribution options.
• Brings prohibited transactions involving Universal Savings Accounts under the excise tax for prohibited transactions.
• Requires failure-to-file and failure-to-report excise-tax penalties to apply to the accounts' reporting obligations.
• Adds the new account part into the tax code table-of-parts for Subchapter F.
• Applies to taxable years beginning after December 31, 2024.
• Does not in the provided text set contribution limits, specific tax benefits, or detailed account rules—those would be defined elsewhere or in other provisions.
• No new appropriations or direct federal spending are established by the described sections.