I 

118TH CONGRESS 

2D SESSION H. R. 9010 

To amend the Internal Revenue Code of 1986 to establish universal savings 

accounts. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 11, 2024 

Mrs. HARSHBARGER (for herself, Mr. GROTHMAN, Mr. OGLES, Mr. PFLUGER, 

and Mr. VAN ORDEN) introduced the following bill; which was referred 

to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to establish 

universal savings accounts. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Universal Savings Ac5 count Act of 2024’’. 

6 SEC. 2. UNIVERSAL SAVINGS ACCOUNTS. 

7 (a) IN GENERAL.—Subchapter F of chapter 1 of the 

8 Internal Revenue Code of 1986 is amended by adding at 

9 the end the following new part: 


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1 ‘‘PART IX—UNIVERSAL SAVINGS ACCOUNTS 

‘‘Sec. 530U. Universal savings accounts. 

2 ‘‘SEC. 530U. UNIVERSAL SAVINGS ACCOUNTS. 

3 ‘‘(a) GENERAL RULE.—A universal savings account 

4 shall be exempt from taxation under this subtitle. Not5 withstanding the preceding sentence, such account shall 

6 be subject to the taxes imposed by section 511 (relating 

7 to imposition of tax on unrelated business income of chari8 table organizations). 

9 ‘‘(b) UNIVERSAL SAVINGS ACCOUNT.—For purposes 

10 of this section, the term ‘universal savings account’ means 

11 a trust created or organized in the United States by an 

12 individual for the exclusive benefit of such individual and 

13 which is designated (in such manner as the Secretary may 

14 prescribe) at the time of the establishment of the trust 

15 as a universal savings account, but only if the written gov16 erning instrument creating the trust meets the following 

17 requirements: 

18 ‘‘(1) Except in the case of a qualified rollover 

19 contribution described in subsection (d)— 

20 ‘‘(A) no contribution will be accepted un21 less it is in cash, and 

22 ‘‘(B) contributions will not be accepted for 

23 the taxable year in excess of the contribution 

24 limit specified in subsection (c)(2). 

25 ‘‘(2) No distribution will be made unless it is— 


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1 ‘‘(A) cash, or 

2 ‘‘(B) property that— 

3 ‘‘(i) has a readily ascertainable fair 

4 market value, and 

5 ‘‘(ii) is identified by the Secretary in 

6 regulations or other guidance as property 

7 to which this subparagraph applies. 

8 ‘‘(3) The trustee is a bank (as defined in sec9 tion 408(n)) or another person who demonstrates to 

10 the satisfaction of the Secretary that the manner in 

11 which that person will administer the trust will be 

12 consistent with the requirements of this section. 

13 ‘‘(4) No part of the trust assets will be invested 

14 in life insurance contracts or collectibles (as defined 

15 in section 408(m)). 

16 ‘‘(5) The interest of an individual in the bal17 ance of his account is nonforfeitable. 

18 ‘‘(6) The assets of the trust shall not be com19 mingled with other property except in a common 

20 trust fund or common investment fund. 

21 ‘‘(c) TREATMENT OF DISTRIBUTIONS AND CON22 TRIBUTIONS.— 

23 ‘‘(1) DISTRIBUTIONS.— 

24 ‘‘(A) IN GENERAL.—Except as provided in 

25 subparagraph (B), any distribution from a uniVerDate Sep 11 2014 20:05 Aug 19, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H9010.IH H9010

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1 versal savings account shall not be includible in 

2 gross income. 

3 ‘‘(B) NET INCOME ATTRIBUTABLE TO EX4 CESS CONTRIBUTIONS.—Any distribution of net 

5 income described in section 4973(i)(2) shall be 

6 includible in the gross income of the account 

7 holder in the taxable year in which the con8 tribution to which such net income relates was 

9 made. 

10 ‘‘(2) CONTRIBUTION LIMIT.— 

11 ‘‘(A) IN GENERAL.—The aggregate 

12 amount of contributions (other than qualified 

13 rollover contributions described in subsection 

14 (d)) for any taxable year to all universal savings 

15 accounts maintained for the benefit of an indi16 vidual shall not exceed the lesser of— 

17 ‘‘(i) $10,000, or 

18 ‘‘(ii) an amount equal to the com19 pensation (within the meaning of section 

20 219) includible in such individual’s gross 

21 income for such taxable year. 

22 ‘‘(B) PHASEOUT.— 

23 ‘‘(i) IN GENERAL.—The amount al24 lowable as a contribution under subpara25 graph (A)(i) (determined without regard to 


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1 this subparagraph) shall be reduced by $50 

2 for each $1,000 (or fraction thereof) by 

3 which the taxpayer’s modified adjusted 

4 gross income exceeds the applicable thresh5 old amount. 

6 ‘‘(ii) APPLICABLE THRESHOLD

7 AMOUNT.—For purposes of this subpara8 graph, the term ‘applicable threshold 

9 amount means’— 

10 ‘‘(I) $400,000, in the case of a 

11 joint return or surviving spouse, 

12 ‘‘(II) $300,000 in the case of a 

13 head of household, or 

14 ‘‘(III) $200,000 in the case of 

15 any other return. 

16 ‘‘(iii) MODIFIED ADJUSTED GROSS IN17 COME.—For purposes of this subpara18 graph, the term ‘modified adjusted gross 

19 income’ means adjusted gross income in20 creased by any amount excluded from 

21 gross income under section 911, 931, or 

22 933. 

23 ‘‘(C) NO CONTRIBUTIONS FOR DEPEND24 ENTS.—In the case of an individual who is a 

25 dependent of another taxpayer for a taxable 


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1 year beginning in the calendar year in which 

2 such individual’s taxable year begins, the dollar 

3 amount under subparagraph (A) for such indi4 vidual’s taxable year shall be zero. 

5 ‘‘(D) COST-OF-LIVING ADJUSTMENT.—In 

6 the case of any taxable year beginning in a cal7 endar year after 2025, the dollar amounts in 

8 subparagraphs (A)(i) and (B)(ii) shall be in9 creased by an amount equal to— 

10 ‘‘(i) such dollar amount, multiplied by 

11 ‘‘(ii) the cost-of-living adjustment de12 termined under section 1(f)(3) for the cal13 endar year, determined by substituting 

14 ‘calendar year 2024’ for ‘calendar year 

15 2016’ in subparagraph (A)(ii) thereof. 

16 If any amount after adjustment under the pre17 ceding sentence is not a multiple of $100, such 

18 amount shall be rounded to the next lower mul19 tiple of $100. 

20 ‘‘(d) QUALIFIED ROLLOVER CONTRIBUTION.—For 

21 purposes of this section, the term ‘qualified rollover con22 tribution’ means a contribution to a universal savings ac23 count from another such account of the same individual, 

24 but only if such amount is contributed not later than the 

25 60th day after the distribution from such other account. 


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1 ‘‘(e) TREATMENT OF ACCOUNT UPON DEATH.— 

2 Upon death of any account holder of a universal savings 

3 account— 

4 ‘‘(1) SPOUSE OR CHILD.—In the case of the ac5 count holder’s surviving spouse or child acquiring 

6 such account holder’s interest in such account by 

7 reason of the death of the account holder, such ac8 count shall be treated as if the acquiring spouse or 

9 child were the account holder. 

10 ‘‘(2) OTHER CASES.—In any other case— 

11 ‘‘(A) all amounts in such account shall be 

12 treated as distributed on the date of such indi13 vidual’s death, and 

14 ‘‘(B) such account shall cease to be treated 

15 as a universal savings account. 

16 ‘‘(f) OTHER SPECIAL RULES.— 

17 ‘‘(1) COMMUNITY PROPERTY LAWS.—This sec18 tion shall be applied without regard to any commu19 nity property laws. 

20 ‘‘(2) LOSS OF TAXATION EXEMPTION OF AC21 COUNT WHERE INDIVIDUAL ENGAGES IN PROHIB22 ITED TRANSACTION; EFFECT OF PLEDGING ACCOUNT

23 AS SECURITY.—Rules similar to the rules of para24 graphs (2) and (4) of section 408(e) shall apply to 

25 any universal savings account. 


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1 ‘‘(g) REPORTS.—The trustee of a universal savings 

2 account shall make such reports regarding such account 

3 to the Secretary and to the account holder with respect 

4 to contributions, distributions, and such other matters as 

5 the Secretary may require. Such reports shall be— 

6 ‘‘(1) filed at such time and in such manner as 

7 the Secretary provides, and 

8 ‘‘(2) furnished to account holders— 

9 ‘‘(A) not later than January 31 of the cal10 endar year following the calendar year to which 

11 such reports relate, and 

12 ‘‘(B) in such manner as the Secretary pro13 vides.’’. 

14 (b) TAX ON EXCESS CONTRIBUTIONS.— 

15 (1) IN GENERAL.—Section 4973(a) of such 

16 Code is amended by striking ‘‘or’’ at the end of 

17 paragraph (5), by inserting ‘‘or’’ at the end of para18 graph (6), and by inserting after paragraph (6) the 

19 following new paragraph: 

20 ‘‘(7) a universal savings account (as defined in 

21 section 530U),’’. 

22 (2) EXCESS CONTRIBUTION.—Section 4973 of 

23 such Code is amended by adding at the end the fol24 lowing new subsection: 


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1 ‘‘(i) EXCESS CONTRIBUTIONS TO UNIVERSAL SAV2 INGS ACCOUNTS.—For purposes of this section— 

3 ‘‘(1) IN GENERAL.—In the case of universal 

4 savings accounts (within the meaning of section 

5 530U), the term ‘excess contributions’ means the 

6 sum of— 

7 ‘‘(A) the amount (if any) by which the 

8 amount contributed for the taxable year to such 

9 accounts (other than qualified rollover contribu10 tions (as defined in section 530U(d))) exceeds 

11 the contribution limit under section 530U(c)(2) 

12 for such taxable year, and 

13 ‘‘(B) the amount determined under this 

14 subsection for the preceding taxable year, re15 duced by the sum of— 

16 ‘‘(i) the distributions out of the ac17 count for the taxable year, and 

18 ‘‘(ii) the amount (if any) by which the 

19 maximum amount allowable as a contribu20 tion under section 530U(c)(2) for the tax21 able year exceeds the amount contributed 

22 to the accounts for the taxable year. 

23 ‘‘(2) SPECIAL RULE.—A contribution shall not 

24 be taken into account under paragraph (1) if such 

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1 come attributable to such contribution) is distributed 

2 to the account holder on or before the due date of 

3 the account holder’s return of tax for such taxable 

4 year.’’. 

5 (c) TAX ON PROHIBITED TRANSACTIONS.—Section 

6 4975(e)(1) of such Code is amended by striking ‘‘or’’ at 

7 the end of subparagraph (F), by striking the period at 

8 the end of subparagraph (G) and inserting ‘‘, or’’, and 

9 by adding at the end the following new subparagraph: 

10 ‘‘(H) a universal savings account (as de11 fined in section 530U).’’. 

12 (d) FAILURE TO PROVIDE REPORTS ON UNIVERSAL

13 SAVINGS ACCOUNTS.—Section 6693(a)(2) of such Code is 

14 amended by striking ‘‘and’’ at the end of subparagraph 

15 (E), by striking the period at the end of subparagraph 

16 (F) and inserting ‘‘, and’’, and by inserting after subpara17 graph (F) the following new subparagraph: 

18 ‘‘(G) section 530U(g) (relating to universal 

19 savings accounts).’’. 

20 (e) CONFORMING AMENDMENT.—The table of parts 

21 for subchapter F of chapter 1 of such Code is amended 

22 by adding at the end the following new item: 

‘‘PART IX. UNIVERSAL SAVINGS ACCOUNTS’’. 


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1 (f) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2024. 

Æ 


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