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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Universal Savings Ac-
count Act of 2024’’. 
SEC. 2. UNIVERSAL SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Subchapter F of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
VerDate Sep 11 2014 
20:05 Aug 19, 2024
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H9010.IH
H9010
ssavage on LAPJG3WLY3PROD with BILLS
‘‘PART IX—UNIVERSAL SAVINGS ACCOUNTS 
‘‘Sec. 530U. Universal savings accounts. 
‘‘SEC. 530U. UNIVERSAL SAVINGS ACCOUNTS. 
‘‘(a) GENERAL RULE.—A universal savings account 
shall be exempt from taxation under this subtitle. Not-
withstanding the preceding sentence, such account shall 
be subject to the taxes imposed by section 511 (relating 
to imposition of tax on unrelated business income of chari-
table organizations). 
‘‘(b) UNIVERSAL SAVINGS ACCOUNT.—For purposes 
of this section, the term ‘universal savings account’ means 
a trust created or organized in the United States by an 
individual for the exclusive benefit of such individual and 
which is designated (in such manner as the Secretary may 
prescribe) at the time of the establishment of the trust 
as a universal savings account, but only if the written gov-
erning instrument creating the trust meets the following 
requirements: 
‘‘(1) Except in the case of a qualified rollover 
contribution described in subsection (d)— 
‘‘(A) no contribution will be accepted un-
less it is in cash, and 
‘‘(B) contributions will not be accepted for 
the taxable year in excess of the contribution 
limit specified in subsection (c)(2). 
‘‘(2) No distribution will be made unless it is— 
VerDate Sep 11 2014 
20:05 Aug 19, 2024
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H9010.IH
H9010
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(A) cash, or 
‘‘(B) property that— 
‘‘(i) has a readily ascertainable fair 
market value, and 
‘‘(ii) is identified by the Secretary in 
regulations or other guidance as property 
to which this subparagraph applies. 
‘‘(3) The trustee is a bank (as defined in sec-
tion 408(n)) or another person who demonstrates to 
the satisfaction of the Secretary that the manner in 
which that person will administer the trust will be 
consistent with the requirements of this section. 
‘‘(4) No part of the trust assets will be invested 
in life insurance contracts or collectibles (as defined 
in section 408(m)). 
‘‘(5) The interest of an individual in the bal-
ance of his account is nonforfeitable. 
‘‘(6) The assets of the trust shall not be com-
mingled with other property except in a common 
trust fund or common investment fund. 
‘‘(c) TREATMENT
OF DISTRIBUTIONS
AND CON-
TRIBUTIONS.— 
‘‘(1) DISTRIBUTIONS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), any distribution from a uni-
VerDate Sep 11 2014 
20:05 Aug 19, 2024
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H9010.IH
H9010
ssavage on LAPJG3WLY3PROD with BILLS
versal savings account shall not be includible in 
gross income. 
‘‘(B) NET INCOME ATTRIBUTABLE TO EX-
CESS CONTRIBUTIONS.—Any distribution of net 
income described in section 4973(i)(2) shall be 
includible in the gross income of the account 
holder in the taxable year in which the con-
tribution to which such net income relates was 
made. 
‘‘(2) CONTRIBUTION LIMIT.— 
‘‘(A) 
IN
GENERAL.—The 
aggregate 
amount of contributions (other than qualified 
rollover contributions described in subsection 
(d)) for any taxable year to all universal savings 
accounts maintained for the benefit of an indi-
vidual shall not exceed the lesser of— 
‘‘(i) $10,000, or 
‘‘(ii) an amount equal to the com-
pensation (within the meaning of section 
219) includible in such individual’s gross 
income for such taxable year. 
‘‘(B) PHASEOUT.— 
‘‘(i) IN
GENERAL.—The amount al-
lowable as a contribution under subpara-
graph (A)(i) (determined without regard to 
VerDate Sep 11 2014 
20:05 Aug 19, 2024
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H9010.IH
H9010
ssavage on LAPJG3WLY3PROD with BILLS
this subparagraph) shall be reduced by $50 
for each $1,000 (or fraction thereof) by 
which the taxpayer’s modified adjusted 
gross income exceeds the applicable thresh-
old amount. 
‘‘(ii) 
APPLICABLE
THRESHOLD 
AMOUNT.—For purposes of this subpara-
graph, the term ‘applicable threshold 
amount means’— 
‘‘(I) $400,000, in the case of a 
joint return or surviving spouse, 
‘‘(II) $300,000 in the case of a 
head of household, or 
‘‘(III) $200,000 in the case of 
any other return. 
‘‘(iii) MODIFIED ADJUSTED GROSS IN-
COME.—For purposes of this subpara-
graph, the term ‘modified adjusted gross 
income’ means adjusted gross income in-
creased by any amount excluded from 
gross income under section 911, 931, or 
933. 
‘‘(C) NO
CONTRIBUTIONS
FOR
DEPEND-
ENTS.—In the case of an individual who is a 
dependent of another taxpayer for a taxable 
VerDate Sep 11 2014 
20:05 Aug 19, 2024
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H9010.IH
H9010
ssavage on LAPJG3WLY3PROD with BILLS
year beginning in the calendar year in which 
such individual’s taxable year begins, the dollar 
amount under subparagraph (A) for such indi-
vidual’s taxable year shall be zero. 
‘‘(D) COST-OF-LIVING
ADJUSTMENT.—In 
the case of any taxable year beginning in a cal-
endar year after 2025, the dollar amounts in 
subparagraphs (A)(i) and (B)(ii) shall be in-
creased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year, determined by substituting 
‘calendar year 2024’ for ‘calendar year 
2016’ in subparagraph (A)(ii) thereof. 
If any amount after adjustment under the pre-
ceding sentence is not a multiple of $100, such 
amount shall be rounded to the next lower mul-
tiple of $100. 
‘‘(d) QUALIFIED ROLLOVER CONTRIBUTION.—For 
purposes of this section, the term ‘qualified rollover con-
tribution’ means a contribution to a universal savings ac-
count from another such account of the same individual, 
but only if such amount is contributed not later than the 
60th day after the distribution from such other account. 
VerDate Sep 11 2014 
20:05 Aug 19, 2024
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H9010.IH
H9010
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(e) TREATMENT
OF ACCOUNT UPON DEATH.— 
Upon death of any account holder of a universal savings 
account— 
‘‘(1) SPOUSE OR CHILD.—In the case of the ac-
count holder’s surviving spouse or child acquiring 
such account holder’s interest in such account by 
reason of the death of the account holder, such ac-
count shall be treated as if the acquiring spouse or 
child were the account holder. 
‘‘(2) OTHER CASES.—In any other case— 
‘‘(A) all amounts in such account shall be 
treated as distributed on the date of such indi-
vidual’s death, and 
‘‘(B) such account shall cease to be treated 
as a universal savings account. 
‘‘(f) OTHER SPECIAL RULES.— 
‘‘(1) COMMUNITY PROPERTY LAWS.—This sec-
tion shall be applied without regard to any commu-
nity property laws. 
‘‘(2) LOSS OF TAXATION EXEMPTION OF AC-
COUNT
WHERE
INDIVIDUAL
ENGAGES
IN
PROHIB-
ITED TRANSACTION; EFFECT OF PLEDGING ACCOUNT 
AS SECURITY.—Rules similar to the rules of para-
graphs (2) and (4) of section 408(e) shall apply to 
any universal savings account. 
VerDate Sep 11 2014 
20:05 Aug 19, 2024
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H9010.IH
H9010
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(g) REPORTS.—The trustee of a universal savings 
account shall make such reports regarding such account 
to the Secretary and to the account holder with respect 
to contributions, distributions, and such other matters as 
the Secretary may require. Such reports shall be— 
‘‘(1) filed at such time and in such manner as 
the Secretary provides, and 
‘‘(2) furnished to account holders— 
‘‘(A) not later than January 31 of the cal-
endar year following the calendar year to which 
such reports relate, and 
‘‘(B) in such manner as the Secretary pro-
vides.’’. 
(b) TAX ON EXCESS CONTRIBUTIONS.— 
(1) IN
GENERAL.—Section 4973(a) of such 
Code is amended by striking ‘‘or’’ at the end of 
paragraph (5), by inserting ‘‘or’’ at the end of para-
graph (6), and by inserting after paragraph (6) the 
following new paragraph: 
‘‘(7) a universal savings account (as defined in 
section 530U),’’. 
(2) EXCESS CONTRIBUTION.—Section 4973 of 
such Code is amended by adding at the end the fol-
lowing new subsection: 
VerDate Sep 11 2014 
20:05 Aug 19, 2024
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H9010.IH
H9010
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(i) EXCESS CONTRIBUTIONS TO UNIVERSAL SAV-
INGS ACCOUNTS.—For purposes of this section— 
‘‘(1) IN
GENERAL.—In the case of universal 
savings accounts (within the meaning of section 
530U), the term ‘excess contributions’ means the 
sum of— 
‘‘(A) the amount (if any) by which the 
amount contributed for the taxable year to such 
accounts (other than qualified rollover contribu-
tions (as defined in section 530U(d))) exceeds 
the contribution limit under section 530U(c)(2) 
for such taxable year, and 
‘‘(B) the amount determined under this 
subsection for the preceding taxable year, re-
duced by the sum of— 
‘‘(i) the distributions out of the ac-
count for the taxable year, and 
‘‘(ii) the amount (if any) by which the 
maximum amount allowable as a contribu-
tion under section 530U(c)(2) for the tax-
able year exceeds the amount contributed 
to the accounts for the taxable year. 
‘‘(2) SPECIAL RULE.—A contribution shall not 
be taken into account under paragraph (1) if such 
contribution (together with the amount of net in-
VerDate Sep 11 2014 
20:05 Aug 19, 2024
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H9010.IH
H9010
ssavage on LAPJG3WLY3PROD with BILLS
come attributable to such contribution) is distributed 
to the account holder on or before the due date of 
the account holder’s return of tax for such taxable 
year.’’. 
(c) TAX ON PROHIBITED TRANSACTIONS.—Section 
4975(e)(1) of such Code is amended by striking ‘‘or’’ at 
the end of subparagraph (F), by striking the period at 
the end of subparagraph (G) and inserting ‘‘, or’’, and 
by adding at the end the following new subparagraph: 
‘‘(H) a universal savings account (as de-
fined in section 530U).’’. 
(d) FAILURE TO PROVIDE REPORTS ON UNIVERSAL 
SAVINGS ACCOUNTS.—Section 6693(a)(2) of such Code is 
amended by striking ‘‘and’’ at the end of subparagraph 
(E), by striking the period at the end of subparagraph 
(F) and inserting ‘‘, and’’, and by inserting after subpara-
graph (F) the following new subparagraph: 
‘‘(G) section 530U(g) (relating to universal 
savings accounts).’’. 
(e) CONFORMING AMENDMENT.—The table of parts 
for subchapter F of chapter 1 of such Code is amended 
by adding at the end the following new item: 
‘‘PART IX. UNIVERSAL SAVINGS ACCOUNTS’’. 
VerDate Sep 11 2014 
20:05 Aug 19, 2024
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6211
E:\BILLS\H9010.IH
H9010
ssavage on LAPJG3WLY3PROD with BILLS
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
Æ 
VerDate Sep 11 2014 
20:05 Aug 19, 2024
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6301
E:\BILLS\H9010.IH
H9010
ssavage on LAPJG3WLY3PROD with BILLS