value of the account on the date on which 
the account beneficiary attains age 18. 
‘‘(D) The account beneficiary has not at-
tained age 8 on the date of the establishment 
of the account. 
‘‘(E) The trustee is a bank (as defined in 
section 408(n)) or another person who dem-
onstrates to the satisfaction of the Secretary 
that the manner in which that person will ad-
minister the trust will be consistent with the re-
quirements of this section or who has so dem-
onstrated with respect to any individual retire-
ment plan. 
‘‘(F) The interest of an individual in the 
balance of his account is nonforfeitable. 
‘‘(G) The assets of the trust shall not be 
commingled with other property except in a 
common trust fund or common investment 
fund. 
‘‘(H) No part of the trust funds will be in-
vested in any asset other than eligible invest-
ments. 
‘‘(2) ELIGIBLE INVESTMENTS.—The term ‘eligi-
ble investments’ means stock of a regulated invest-
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ment company (within the meaning of section 851) 
which— 
‘‘(A) tracks a well-established index of 
United States equities (or which invests in an 
equivalent diversified portfolio of United States 
equities), 
‘‘(B) does not use leverage, 
‘‘(C) minimizes fees and expenses, and 
‘‘(D) meets such other criteria as the Sec-
retary determines appropriate for purposes of 
this section. 
‘‘(3) ACCOUNT
BENEFICIARY.—The term ‘ac-
count beneficiary’ means the individual on whose be-
half the MAGA account was established. 
‘‘(c) TREATMENT OF CONTRIBUTIONS.— 
‘‘(1) CONTRIBUTION LIMIT.—The contribution 
limit for any taxable year is $5,000. 
‘‘(2) CONTRIBUTIONS
FROM
TAX
EXEMPT 
SOURCES
AND
ROLLOVER
CONTRIBUTIONS.—The 
amount contributed to a MAGA account for pur-
poses of paragraph (1) shall be determined without 
regard to— 
‘‘(A) a qualified rollover contribution, 
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‘‘(B) any contribution from the Federal 
Government or any State, local, or tribal gov-
ernment, or 
‘‘(C) any contribution made through the 
program established under subsection (l). 
‘‘(3) COST-OF-LIVING ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
2026, the $5,000 amount under paragraph (1) 
shall be increased 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 2025’ for ‘calendar year 
2016’ in subparagraph (A)(ii) thereof. 
‘‘(B) ROUNDING.—If any increase under 
subparagraph (A) is not a multiple of $100, 
such amount shall be rounded to the next lower 
multiple of $100. 
‘‘(d) DISTRIBUTIONS.— 
‘‘(1) AMOUNTS ALLOCABLE TO INVESTMENT IN 
THE CONTRACT.—A distribution from a MAGA ac-
count of an amount allocable to the investment in 
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the contract shall not be includible in the gross in-
come of the distributee. 
‘‘(2) AMOUNTS ALLOCABLE TO INCOME ON THE 
CONTRACT
USED
FOR
QUALIFIED
EXPENSES.—A 
distribution from a MAGA account of an amount al-
locable to income on the contract and which is used 
exclusively to pay for qualified expenses shall be in-
cludible in net capital gain of the distributee under 
section 1(h)(12). 
‘‘(3) AMOUNTS
INCLUDIBLE
IN
GROSS
IN-
COME.—Any distribution from a MAGA account 
which is not described in paragraph (1) or (2) shall 
be includible in the gross income of the distributee. 
‘‘(4) QUALIFIED EXPENSES.—For purposes of 
this subsection, the term ‘qualified expenses’ means 
any of the following expenses paid or incurred for 
the benefit of the account beneficiary: 
‘‘(A) Qualified higher education expenses 
(as defined in section 529(e)(3)) determined 
without regard to section 529(c)(7). 
‘‘(B) Qualified post-secondary credentialing 
expenses (as defined in section 529(f)). 
‘‘(C) Under regulations provided by the 
Secretary, amounts paid or incurred with re-
spect to any small businesses for which the ben-
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eficiary has obtained any small business loan, 
small farm loan, or similar loan. 
‘‘(D) Any amount used for the purchase 
(as defined in section 36(c)(3)) of the principal 
residence (as used in section 121) of the ac-
count beneficiary if such account beneficiary is 
a first-time homebuyer (as defined in section 
36(c)(1)) with respect to such purchase. 
‘‘(5) EXCEPTIONS.—Paragraphs (2) and (3) 
shall not apply to any distribution which is a quali-
fied rollover contribution. 
‘‘(6) ADDITIONAL TAX ON CERTAIN DISTRIBU-
TIONS.—In the case of a distributee who has not at-
tained age 30, the tax imposed by this chapter on 
the account beneficiary for any taxable year in which 
there is a distribution from a MAGA account of such 
beneficiary which is includible in gross income under 
paragraph (3) shall be increased by 10 percent of 
the amount which is so includible. 
‘‘(e) QUALIFIED ROLLOVER CONTRIBUTION.—For 
purposes of this section, the term ‘qualified rollover con-
tribution’ means an amount which is paid in a direct trust-
ee-to-trustee transfer from a MAGA account maintained 
for the benefit of the account beneficiary to a MAGA ac-
count maintained for such beneficiary. 
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‘‘(f) TREATMENT AFTER DEATH OF ACCOUNT BENE-
FICIARY.—Rules similar to the rules of section 223(f)(8) 
shall apply for purposes of this section. 
‘‘(g) DETERMINATIONS OF AGGREGATE DISTRIBU-
TIONS AND INVESTMENT IN CONTRACT IN THE CASE OF 
CERTAIN ROLLOVER CONTRIBUTIONS.—In the case of a 
qualified rollover contribution which is described in sub-
section (e)(2), any determination required under this sec-
tion of the amount of the investment of the contract or 
of aggregate distributions from the MAGA account shall 
be determined with respect to the aggregate of such 
amounts for all MAGA accounts of the same account bene-
ficiary. 
‘‘(h) CUSTODIAL ACCOUNTS.—For purposes of this 
section, a custodial account shall be treated as a trust 
under this section if— 
‘‘(1) the custodial account would, except for the 
fact that it is not a trust, constitute a trust which 
meets the requirements of subsection (b)(1), and 
‘‘(2) the assets of such account are held by a 
bank (as defined in section 408(n)) or another per-
son who demonstrates, to the satisfaction of the Sec-
retary, that the manner in which he will administer 
the account will be consistent with the requirements 
of this section. 
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For purposes of this title, in the case of a custodial ac-
count treated as a trust by reason of the preceding sen-
tence, the person holding the assets of such account shall 
be treated as the trustee thereof. 
‘‘(i) TERMINATION.— 
‘‘(1) AGE 31.—Upon the date on which the ac-
count beneficiary attains age 31, a MAGA account 
shall cease to be a MAGA account and the amount 
in such account shall be treated as distributed for 
purposes of subsection (d). 
‘‘(2) MULTIPLE
ACCOUNTS
OF
ONE
BENE-
FICIARY.— 
‘‘(A) IN GENERAL.—In the case of any du-
plicate MAGA account of any account bene-
ficiary other than a MAGA account which is es-
tablished by the deposit through a qualified roll-
over contribution of the entire amount of an-
other MAGA account of the account bene-
ficiary— 
‘‘(i) such duplicate MAGA account 
shall cease to be a MAGA account and the 
amount in such account shall be treated as 
distributed for purposes of subsection (d), 
and 
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‘‘(ii) there is imposed an excise tax on 
the account beneficiary in an amount equal 
to so much of cash value of the account as 
is allocable to income on the contract. 
‘‘(B) WITHHOLDING
REQUIREMENT.—In 
the case of an account terminated under sub-
paragraph (A), the trustee shall deduct and 
withhold upon the amount to be distributed the 
amount in excess described in subparagraph 
(A)(ii). 
‘‘(C) NOTIFICATION.—The Secretary, upon 
determining that a duplicate account exists, 
shall provide a notice to the account beneficiary 
of such duplicate account (and the account cus-
todian, in the case of a custodial account) and 
to each trustee of any MAGA account of the ac-
count beneficiary of such duplicate account 
which identifies each MAGA account of such 
beneficiary and the trustee of each such ac-
count. 
‘‘(D) DUPLICATE ACCOUNT.—For purposes 
of this paragraph, the term ‘duplicate account’ 
means— 
‘‘(i) in the case of an account bene-
ficiary for the benefit of whom an account 
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was established by the Secretary under 
section 6434, any other MAGA account of 
such account beneficiary, or 
‘‘(ii) in the case of any other account 
beneficiary, any MAGA account established 
after the first MAGA account established 
for the benefit of such account beneficiary. 
‘‘(j) INVESTMENT IN THE CONTRACT.—For purposes 
of this section, rules similar to the rules applied to a quali-
fied tuition program (as defined in section 529(b)) under 
section 72(e)(9) shall apply for purposes of determining 
the investment in the contract, except that such amount 
shall be determined without regard to any contribution 
which is described in subsection (c)(2). 
‘‘(k) REPORTS.—The trustee of a MAGA account 
shall make such reports regarding such account to the 
Secretary and to the beneficiary of the account with re-
spect to contributions, distributions, the amount of invest-
ment in the contract, and such other matters as the Sec-
retary may require. The reports required by this sub-
section shall be filed at such time and in such manner 
and furnished to such individuals at such time and in such 
manner as may be required. 
‘‘(l) CONTRIBUTIONS
TO PREDOMINATELY UNRE-
LATED CHILDREN.—The Secretary shall establish a pro-
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gram through which contributions may be made to the 
MAGA accounts of a large group of account beneficiaries 
if— 
‘‘(1) the contribution is made by any person de-
scribed in any paragraph of section 501(c) and ex-
empt from taxation under section 501(a), 
‘‘(2) such accounts are selected on the basis of 
the location of the residence of the account bene-
ficiaries, the school district in which such bene-
ficiaries attend school, or another basis the Sec-
retary determines appropriate, and 
‘‘(3) all individuals who are account bene-
ficiaries of such an account who meet the selected 
criteria receive an equal portion of the contribu-
tion.’’. 
(b) DISTRIBUTION TAXED AT SAME RATE AS NET 
CAPITAL GAINS.—Section 1(h) is amended by adding at 
the end the following new paragraph: 
‘‘(12) DISTRIBUTIONS
FROM
MAGA
ACCOUNT 
TAXED AS NET CAPITAL GAIN.—For purposes of this 
subsection, the term ‘net capital gain’ means the net 
capital gain (determined without regard to this para-
graph) increased by the amount includible in net 
capital gain under this paragraph by reason of sec-
tion 530A(d)(2).’’. 
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(c) TAX ON EXCESS CONTRIBUTIONS.— 
(1) IN GENERAL.—Section 4973(a) is amended 
by striking ‘‘or’’ at the end of paragraph (5), by in-
serting ‘‘or’’ at the end of paragraph (6), and by in-
serting after paragraph (6) the following new para-
graph: 
‘‘(7) a MAGA account (as defined in section 
530A(b)),’’. 
(2) EXCESS CONTRIBUTION.—Section 4973 is 
amended by adding at the end the following new 
subsection: 
‘‘(i) EXCESS CONTRIBUTIONS
TO
A MAGA AC-
COUNT.—For purposes of this section, in the case of 
MAGA accounts (within the meaning of section 530A), the 
term ‘excess contributions’ means the sum of— 
‘‘(1) the amount by which the amount contrib-
uted for the calendar year to such account (other 
than qualified rollover contributions (as defined in 
section 530A(e))) exceeds the contribution limit 
under section 530A(c)(1) (determined without re-
gard 
to 
contributions 
described 
in 
section 
530A(c)(2)), and 
‘‘(2) the amount determined under this sub-
section for the preceding calendar year, reduced by 
the excess (if any) of the maximum amount allow-
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able as a contribution under section 530A(c)(1) (as 
so determined) for the calendar year over the 
amount contributed to the account for the calendar 
year (other than qualified rollover contributions (as 
so defined)).’’. 
(d) DISCLOSURE OF RETURN INFORMATION TO FA-
CILITATE CERTAIN CONTRIBUTIONS.—Section 6103(l) is 
amended by adding at the end the following new para-
graph: 
‘‘(23) DISCLOSURE OF RETURN INFORMATION 
TO ENABLE CERTAIN CONTRIBUTIONS TO MAGA AC-
COUNTS.—Upon written request signed by the head 
of the bureau or office of the Department of the 
Treasury requesting the inspection or disclosure, the 
Secretary may disclose the following return informa-
tion with respect to a MAGA account (as defined in 
section 503A(b)) to officers and employees of such 
bureau or office to the extent that such disclosure is 
necessary to carry out section 530A(l): 
‘‘(A) Information necessary to identify the 
account holders in a particular class of bene-
ficiaries identified by a donor as the intended 
recipients. 
‘‘(B) The name, address, and social secu-
rity number of a beneficiary. 
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‘‘(C) The account custodian and the ad-
dress of such custodian. 
‘‘(D) The account number. 
‘‘(E) The routing number. 
‘‘(F) To the extent determined by the Sec-
retary in regulations, such other return infor-
mation as the Secretary determines necessary 
to ensure proper routing of funds. 
Return information disclosed under this paragraph 
may only be used to identify account holders in a 
particular class of beneficiaries or for the proper 
routing of funds and may not be redisclosed by the 
Secretary.’’. 
(e) FAILURE TO PROVIDE REPORTS ON MAGA AC-
COUNTS.—Section 6693(a)(2) 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 adding at the end the following new subpara-
graph: 
‘‘(G) section 530A(h) (relating to MAGA 
accounts).’’. 
(f) CONFORMING AMENDMENT.—The table of parts 
for subchapter F of chapter 1 is amended by adding at 
the end the following new item: 
‘‘PART IX. MAGA ACCOUNTS’’. 
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(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 3. MAGA ACCOUNTS CONTRIBUTION PILOT PROGRAM. 
(a) IN GENERAL.—Subchapter B of chapter 65 is 
amended by adding at the end the following new section: 
‘‘SEC. 6434. MAGA ACCOUNTS CONTRIBUTION PILOT PRO-
GRAM. 
‘‘(a) IN GENERAL.—In the case of any taxpayer with 
respect to whom an eligible individual is a qualifying child, 
there shall be allowed a one-time credit of $1,000 with 
respect to each such eligible individual who is a qualifying 
child of such taxpayer which shall be payable by the Sec-
retary only to the MAGA account with respect to which 
such eligible individual is the account beneficiary. 
‘‘(b) ACCOUNT ESTABLISHED BY SECRETARY.— 
‘‘(1) IN GENERAL.—In the case of any eligible 
individual that the Secretary determines is not the 
account beneficiary of any MAGA account as of the 
qualifying date of such eligible individual, the Sec-
retary shall establish an account for the benefit of 
such eligible individual. 
‘‘(2) QUALIFYING
DATE.—For purposes of 
paragraph (1), the term ‘qualifying date’ means, 
with respect to an eligible individual, the first date 
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on which a return of tax is filed by an individual 
with respect to whom such eligible individual is a 
qualifying child with respect to the taxable year to 
which such return relates. 
‘‘(3) NOTIFICATION.—In the case of any eligible 
individual for the benefit of whom the Secretary es-
tablishes an account under paragraph (1), the Sec-
retary shall— 
‘‘(A) notify any individual with respect to 
whom such eligible individual is a qualifying 
child for the taxable year described in para-
graph (2) of the establishment of such account, 
and 
‘‘(B) shall provide an opportunity to such 
individual to elect to decline the application of 
this subsection to such qualifying child. 
‘‘(4) DETERMINATION
OF
DEFAULT
TRUST-
EE.—For purposes of selecting a trustee for an ac-
count established under paragraph (1), the Sec-
retary shall take into account— 
‘‘(A) the history of reliability and regu-
latory compliance of such trustee, 
‘‘(B) the customer service experience of 
such trustee, 
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‘‘(C) the costs imposed by such trustee on 
the account or account beneficiary, and 
‘‘(D) to the extent practicable, the pref-
erences of any individual described in para-
graph (3)(A) with respect to such eligible indi-
vidual. 
‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of sub-
section (a), the term eligible individual means an indi-
vidual— 
‘‘(1) who is born after December 31, 2024, and 
before January 1, 2029, and 
‘‘(2) who is a United States citizen at birth. 
‘‘(d) SOCIAL SECURITY NUMBER REQUIRED.— 
‘‘(1) IN GENERAL.—No credit shall be allowed 
under subsection (a) to a taxpayer unless such tax-
payer includes on the return of tax for the taxable 
year— 
‘‘(A) such individual’s social security num-
ber, 
‘‘(B) if such individual is married, the so-
cial security number of such individual’s spouse, 
and 
‘‘(C) the social security number of the eli-
gible individual with respect to whom such cred-
it is allowed. 
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‘‘(2) SOCIAL
SECURITY
NUMBER
DEFINED.— 
For purposes of paragraph (1), the term ‘social se-
curity number’ shall have the meaning given such 
term in section 24(h)(7). 
‘‘(e) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFYING CHILD.—The term qualifying 
child has the meaning given such term in section 
152(c). 
‘‘(2) 
MAGA 
ACCOUNT; 
ACCOUNT
BENE-
FICIARY.—The terms ‘MAGA account’ and ‘account 
beneficiary’ have the meaning given such terms in 
section 530A(b).’’. 
(b) PENALTY FOR NEGLIGENT CLAIM OR FRAUDU-
LENT CLAIM.—Part I of subchapter A of chapter 68 of 
subtitle F is amended by adding at the end the following 
new section: 
‘‘SEC. 6659. IMPROPER CLAIM FOR MAGA ACCOUNT CON-
TRIBUTION PILOT PROGRAM CREDIT. 
‘‘(a) IN GENERAL.—In the case of any taxpayer that 
makes an excessive claim for a credit under section 
6434— 
‘‘(1) if such excess is a result of negligence or 
disregard of the rules or regulations, there shall be 
imposed a penalty of $500, or 
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‘‘(2) if such excess is a result of fraud, there 
shall be imposed a penalty of $1,000. 
‘‘(b) DEFINITIONS.—The terms ‘negligence’ and ‘dis-
regard’ have the same meaning as when such terms are 
used in section 6662.’’. 
(c) OMISSION OF CORRECT SOCIAL SECURITY NUM-
BER TREATED MATHEMATICAL OR CLERICAL ERROR.— 
Section 6213(g)(2) is amended by striking ‘‘and’’ at the 
end of subparagraph (U), by striking the period at the 
end of subparagraph (V) and inserting ‘‘, and’’, and by 
inserting after subparagraph (V) the following new sub-
paragraph: 
‘‘(W) an omission of a correct social secu-
rity number required under section 6434(d)(1) 
(relating to the MAGA accounts contribution 
pilot program).’’. 
(d) CLERICAL AMENDMENTS.— 
(1) The table of sections for subchapter B of 
chapter 65 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 6434. MAGA accounts contribution pilot program.’’. 
(2) The table of sections for part I of sub-
chapter A of chapter 68 of subtitle F is amended by 
inserting after the item relating to section 6658 the 
following new item: 
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‘‘Sec. 6659. Improper claim for MAGA account contribution pilot program 
credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
Æ 
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