An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Internal Revenue Code of 1986

The official compilation of federal tax laws in the United States, which this bill proposes to change.

Tax-exempt

Meaning that income or gains from the MAGA account are not subject to federal income taxes.

Account Beneficiary

The specific individual for whom the MAGA account is established and who will ultimately benefit from its funds.

Qualified Expenses

Specific categories of expenses, such as higher education, vocational training, small business costs, or a first-time home purchase, for which MAGA account withdrawals receive favorable tax treatment.

Regulated Investment Company

A company that pools money from investors to invest in a portfolio of securities, often referred to as a mutual fund or exchange-traded fund (ETF).

Rollover Contribution

A transfer of funds from one tax-advantaged account to another without incurring taxes, allowing the money to continue growing tax-deferred or tax-free.

Unrelated Business Income

Income that a tax-exempt organization (like a MAGA account, in this context) earns from a trade or business that is regularly carried on and is not substantially related to its exempt purpose.