I 
119TH CONGRESS 
1ST SESSION H. R. 3186 
To amend the Internal Revenue Code of 1986 to create Universal Savings 
Accounts. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 5, 2025 
Mrs. HARSHBARGER 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 create 
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 2025’’. 
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: 
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‘‘PART IX—UNIVERSAL SAVINGS ACCOUNTS 
‘‘SEC. 530A. 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 
for the exclusive benefit of an individual and which is des-
ignated (in such manner as the Secretary shall prescribe) 
at the time of the establishment of the trust as a Universal 
Savings Account, but only if the written governing instru-
ment 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 calendar year in excess of the contribution 
limit specified in subsection (c)(1). 
‘‘(2) 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 
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which that person will administer the trust will be 
consistent with the requirements of this section or 
who has so demonstrated with respect to any indi-
vidual retirement plan. 
‘‘(3) The interest of an individual in the bal-
ance of his account is nonforfeitable. 
‘‘(4) The assets of the trust shall not be com-
mingled with other property except in a common 
trust fund or common investment fund. 
‘‘(5) No part of the trust funds will be invested 
in life insurance contracts. 
‘‘(c) TREATMENT
OF CONTRIBUTIONS
AND DIS-
TRIBUTIONS.— 
‘‘(1) CONTRIBUTION LIMIT.— 
‘‘(A) 
IN
GENERAL.—The 
aggregate 
amount of contributions (other than qualified 
rollover contributions described in subsection 
(d)) for any calendar year to all Universal Sav-
ings Accounts maintained for the benefit of an 
individual shall not exceed the sum of— 
‘‘(i) $10,000, plus 
‘‘(ii) the product of— 
‘‘(I) $500, and 
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‘‘(II) the number of calendar 
years after 2024 and before such cal-
endar year, plus 
‘‘(iii) in the case of any calendar year 
after 2025, the product of— 
‘‘(I) the sum of the amount in 
clauses (i) and (ii) for such calendar 
year, multiplied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year, determined by 
substituting ‘calendar year 2024’ for 
‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
If any increase under clause (iii) is not a 
multiple of $100, such amount shall be 
rounded to the next lower multiple of 
$100. 
‘‘(B) LIMITATION.— 
‘‘(i) IN GENERAL.—The amount de-
termined under subparagraph (A) for any 
calendar year shall not exceed $25,000. 
‘‘(ii) INFLATION
ADJUSTMENT.—In 
the case of any calendar year after 2025, 
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the $25,000 amount under clause (i) shall 
be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year, determined by 
substituting ‘calendar year 2024’ for 
‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
If any increase under this clause is not a 
multiple of $100, such amount shall be 
rounded to the next lower multiple of 
$100. 
‘‘(2) DISTRIBUTIONS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), any distribution from a Uni-
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-
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tribution to which such net income relates was 
made. 
‘‘(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 beneficiary, 
but only if such amount is contributed not later than the 
60th day after the distribution from such other account. 
‘‘(e) TREATMENT
OF ACCOUNT UPON DEATH.— 
Upon death of any account holder of a Universal Savings 
Account— 
‘‘(1) SPOUSE.—In the case of the account hold-
er’s surviving spouse acquiring such account holder’s 
interest in such account by reason of the death of 
the account holder, such account shall be treated as 
if the spouse 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) CUSTODIAL ACCOUNTS.—For purposes of this 
section, a custodial account shall be treated as a trust 
under this section if the assets of such account are held 
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by a bank (as defined in section 408(n)) or another person 
who demonstrates, to the satisfaction of the Secretary, 
that the manner in which he will administer the account 
will be consistent with the requirements of this section, 
and if the custodial account would, except for the fact that 
it is not a trust, constitute a trust which meets the re-
quirements of subsection (b). For purposes of this title, 
in the case of a custodial account treated as a trust by 
reason of the preceding sentence, the custodian of such 
account shall be treated as the trustee thereof. 
‘‘(g) REPORTS.—The trustee of a Universal Savings 
Account shall make such reports regarding such account 
to the Secretary and to the beneficiary of the account with 
respect to contributions, distributions, and such other 
matters as the Secretary may require. The reports re-
quired by this subsection 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.’’. 
(b) 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: 
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