The Universal Savings Account Act of 2025 proposes to amend the Internal Revenue Code of 1986 by creating a new savings vehicle called Universal Savings Accounts (USAs) . These accounts are designed to be exempt from taxation, similar to other tax-advantaged savings plans, though they would be subject to taxes on unrelated business income. To establish a USA, it must be a trust created in the United States exclusively for an individual's benefit, with a qualified trustee. Contributions to a USA must be made in cash and are subject to annual limits, starting at $10,000 and increasing with inflation and an additional $500 per year after 2024, capped at an inflation-adjusted $25,000 annually. Rollover contributions from other USAs are permitted. A key feature is that distributions from a USA are generally not includible in gross income , offering a tax-free withdrawal mechanism. The bill also specifies that the individual's interest in the account is nonforfeitable, assets cannot be commingled except in common funds, and investments in life insurance contracts are prohibited. Excess contributions to a USA would be subject to a tax under Section 4973 of the Internal Revenue Code. Upon the death of an account holder, a surviving spouse can acquire the account and be treated as the new account holder, while in other cases, the account's assets are treated as distributed on the date of death and cease to be a USA. The legislation mandates reporting requirements for trustees to both the Secretary and the account beneficiary, with these provisions taking effect for taxable years beginning after December 31, 2024.