Bill · H.R. 3407· House(119-HR-3407)
Money Accounts for Growth and Advancement Act
- Introduced
- 5/14/2025
- Last activity
- 5/14/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Blake Moore
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill proposes the creation of "MAGA accounts," which are tax-exempt trusts intended for the exclusive benefit of an individual. These accounts must be established with cash and are subject to specific contribution limits and distribution restrictions. The bill includes a pilot program providing a one-time $1,000 credit to these accounts for eligible individuals born between late 2024 and early 2029. Distributions can be used for specific purposes like higher education or first-time home purchases. The act also establishes rules for how these accounts are managed, taxed, and terminated.
Yes· 3 of 14
Would children be better off under this?+5
The bill provides a $1,000 credit and tax-advantaged savings specifically for the benefit of children.
Would students be better off under this?+5
The account specifically supports higher education and post-secondary credentialing expenses.
Would people in their twenties and thirties be better off under this?+4
The account supports higher education and first-time homeownership, which are key milestones for young adults.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Tax-Exempt Savings: MAGA accounts are exempt from taxation under the subtitle, which can help grow wealth over time (Section 530A(a)).
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Financial Assistance for Education and Housing: Distributions can be used for qualified higher education expenses, post-s-econdary credentialing, small business loans, or the purchase of a principal residence by a first-time homebuyer (Section 530A(d)(4)).
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Direct Financial Credit: Under the pilot program, a one-time credit of $1,000 is allowed for each eligible individual to be paid into their MAGA account (Section 6434(a)).
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Tax Advantages on Distributions: Amounts allocable to investments in the contract are not includible in the distributee's gross income, and certain income used for qualified expenses is taxed at the net capital gain rate (Section 530A(d)(1)-(2)).
Potential Negative Impacts for People
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Strict Contribution and Age Restrictions: Contributions are only accepted if the beneficiary is under age 18, and the account cannot be established if the beneficiary is already age 8 or older (Section 530A(b)(1)(B) and (D)).
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Limited Distribution Options: Distributions are generally not allowed before the beneficiary reaches age 18, and there are limits on distributions for those under age 25 (Section 530A(b)(1)(C)).
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Potential Penalties and Taxes: A 10 percent additional tax may be imposed on distributions includible in gross income for beneficiaries under age 30 (Section 530A(d)(6)). Additionally, taxpayers may face penalties of $500 or $1,000 for negligent or fraudulent claims regarding the pilot program credit (Section 6659(a)).
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Account Termination Requirements: Accounts must cease to be MAGA accounts once the beneficiary reaches age 31, at which point the amounts are treated as distributed (Section 530A(i)(1)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Children+5Good For Students+5Good For Young Adults+4Good For Middle Class Households+3Good For Business Owners+2Good For Low Income Households+2
- Economy And Finance
- Reduces Capital Gains Tax+3Reduces Middle Class Taxes+3Improves Small Business Support+2Reduces Small Business Taxes+2Improves Economic Growth+1
- Social Issues And Justice
- Improves Affordable Housing+4Improves Poverty Reduction+2
- Education And Technology
- Improves College Affordability+4
- 5/14/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House