1. Short title This Act may be cited as the Universal Savings Account Act . 2. Universal savings accounts (a) In general Subchapter F of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part: IX Universal savings accounts 530A. Universal savings accounts (a) General rule A Universal Savings Account shall be exempt from taxation under this subtitle. Notwithstanding the preceding sentence, such account shall be subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable organizations). (b) Universal savings account For purposes of this section, the term Universal Savings Account means a trust created or organized in the United States by an eligible individual for the exclusive benefit of such eligible individual or his beneficiaries and which is designated (in such manner as the Secretary shall prescribe) at the time of the establishment of the trust as a Universal Savings Account, but only if the written governing instrument creating the trust meets the following requirements: (1) Except in the case of a qualified rollover contribution described in subsection (e)— (A) no contribution will be accepted unless it is in cash, and (B) contributions will not be accepted for the calendar year in excess of the contribution limit specified in subsection (d)(1). (2) The trustee is a bank (as defined in section 408(n)) or another person who demonstrates to the satisfaction of the Secretary that the manner in which that person will administer the trust will be consistent with the requirements of this section or who has so demonstrated with respect to any individual retirement plan. (3) No part of the trust assets will be invested in life insurance contracts. (4) The interest of an individual in the balance of his account is nonforfeitable. (5) The assets of the trust shall not be commingled with other property except in a common trust fund or common investment fund. (c) Eligible individual For purposes of this section,