American Dream Accounts Act of 2026

This bill would create a new type of tax-exempt savings account, called an American dream account, for U.S. citizens. People could contribute up to $7,500 per year ($10,000 once the account holder reaches age 35), with a lifetime contribution cap of $250,000. Money taken out for a first-time home purchase would not be taxed, up to $500,000 ($250,000 each for joint buyers), and this tax-free withdrawal could be used only once. Other withdrawals would be taxed as income plus an extra 10 percent tax, with exceptions for death and disability, and funds could be rolled over to a family member's account or a Roth IRA within limits. The changes would apply to tax years beginning after December 31, 2026.

Full text and official record on Congress.gov

Sponsors

• Rick Scott Republican sponsor
• 0 cosponsors