Money Accounts for Growth and Advancement Act

The MAGA Act establishes tax-advantaged "MAGA accounts" for individuals under age 18, with $5,000 annual contribution limits. These accounts require specific setup (including social security numbers and beneficiary age restrictions), limit investments to certain index-tracking funds, and restrict distributions until age 18 with additional rules for those under 25. The bill includes a pilot program that would automatically establish MAGA accounts for children born between 2025-2028 with $1,000 one-time government contributions. Distributions for qualified education, small business, or first-time homebuyer expenses would be treated as capital gains, while other distributions would be taxed with an additional 10% penalty for those under age 30.