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119-hr-3407119th CongressWALLET

Money Accounts for Growth and Advancement Act

Sponsored By: Representative Moore, Blake D. [R-UT-1]

Introduced

Summary

Creates MAGA accounts — a new tax-advantaged savings trust for children. The bill would set up MAGA accounts with a $5,000 annual contribution limit and strict age, investment, and distribution rules.

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  • Families and children: Guardians could open accounts for beneficiaries under age 8. Contributions generally cannot start before 2026 and are capped at $5,000 per year, with cost-of-living increases beginning in 2027. Withdrawals are restricted until age 18, limited for young beneficiaries, and the account ends at age 31.
  • Financial institutions and trustees: Trustees must be banks or approved administrators. Accounts may hold only eligible, low-fee U.S. equity index funds or diversified equivalents with no leverage, and assets cannot be commingled outside common trust or investment funds.
  • Tax administration and pilot program: The bill would create a one-time $1,000 credit deposited into MAGA accounts for eligible children born 2025–2028 who are U.S. citizens at birth. Trustees must report to the Treasury and beneficiaries. Penalties apply for improper pilot credit claims, including $500 for negligence and $1,000 for fraud.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Automatic MAGA account and $1,000 for newborns

If enacted, Treasury could open a MAGA account for your child when first claimed on your tax return, unless you opt out. A one‑time $1,000 deposit would go into a child’s MAGA account if the child is born from 1/1/2025 through 12/31/2028 and is a U.S. citizen at birth. To get this pilot deposit, your return would need your SSN, your spouse’s SSN if married, and the child’s SSN. Missing a required SSN would block the credit and be treated as a clerical error for IRS processing. Filing an excessive claim could bring a $500 penalty for negligence or $1,000 for fraud.

Open and fund MAGA kid accounts

This bill would create a new, tax‑favored MAGA account for a child. The child would need to be under age 8 when the account is opened, and Social Security numbers would be required. Starting in 2026, you could contribute cash up to $5,000 per year for children under 18; the limit could rise with inflation after 2026. Government deposits and trustee‑to‑trustee rollovers would not count toward the yearly limit. If you put in too much, an excise tax could apply. Investments would be limited to low‑fee index funds, a bank or approved trustee must hold the account, some custodial accounts could qualify, and trustees would report activity to the IRS and the beneficiary.

Using MAGA money: rules and taxes

This bill would restrict withdrawals before age 18, and limit withdrawals before age 25 to no more than half of the account’s cash value at age 18. You could use funds for college, approved credentials, certain small business or farm loan costs, or to buy your first home. Return of contributions would not be taxed; income used for those qualified expenses would be taxed as capital gains; other withdrawals would be taxed as income. If you are under 30, you would owe an extra 10% tax on the part included in income. At age 31, the account would end and be treated as a distribution for taxes; duplicate accounts for the same child would be shut and could face an excise tax on the income portion, with trustee withholding.

Limited IRS data sharing for MAGA deposits

If enacted, Treasury could share limited tax return details to identify MAGA account holders and route deposits to groups of beneficiaries. The data could include names, addresses, SSNs, custodians, account numbers, and routing numbers. It could be used only to identify accounts or route funds and could not be re‑shared.

Sponsors & CoSponsors

Sponsor

Moore, Blake D. [R-UT-1]

UT • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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