US SB1581

Creates tax-exempt Universal Savings Accounts (USAs) allowing individuals to contribute up to $10,000 annually in cash, with the limit increasing by $500 each year after 2024 and adjusted for inflation, capped at $25,000 per year

Distributions from USAs are not included in gross income, with no restrictions on withdrawal purpose or timing, unlike traditional retirement accounts

Accounts must be held by a bank or approved trustee, with assets kept separate from other property and prohibited from investment in life insurance contracts

Upon account holder death, a surviving spouse can assume ownership of the account; otherwise, all amounts are treated as distributed and the account terminates

Applies to taxable years beginning after December 31, 2024, and imposes a 6% excise tax on excess contributions that exceed annual limits