S.1581

Universal Savings Account Act of 2025 creates tax-exempt savings accounts for individuals.

The Universal Savings Account Act of 2025 amends the Internal Revenue Code to establish Universal Savings Accounts. These accounts are trusts created for individual benefit, with specific requirements including non-commingling of assets and prohibition of life insurance investments. Contributions are capped at $25,000 annually, with inflation adjustments post-2025. Distributions are generally tax-free, except for net income from excess contributions. The accounts are subject to taxes on unrelated business income.