The Invest America Act would create tax-favored investment accounts for individuals. The accounts could hold only mutual funds or exchange-traded funds that track the S&P 500 and meet other requirements set by the Treasury Secretary. Contributions would be limited to $5,000 per year, with the limit adjusted for inflation after 2026. Account holders generally could not take money out before age 18. Withdrawals would be included in income and treated as net capital gain for tax-rate purposes.
The bill would provide a $1,000 federal contribution to eligible individuals born after July 4, 2026, who are U.S. citizens and have at least one U.S.-citizen parent when they are born. The Treasury Secretary would establish an account if an eligible individual does not already have one.
Eligible families could receive a $1,000 deposit into a child's account. Contributions could be made subject to the annual limit, and account funds would be restricted to eligible S&P 500-tracking funds. Money generally could not be withdrawn until the beneficiary turns 18. The bill requires account trustees to report account information to the Treasury Secretary and beneficiary.
The bill authorizes federal contributions of $1,000 for each eligible individual and appropriates amounts needed to make those payments. It does not state a total cost. Contributions to an account are limited to $5,000 per year, with inflation adjustments beginning after 2026.
No publicly available information.
No publicly available information.