The Skill Savings Account Act of 2026 creates a new tax-advantaged savings account that allows workers to set aside money for job training and education expenses without paying taxes on those contributions or withdrawals. Eligible employees working in the United States can contribute up to $10,000 per year of their own money, and employers can add up to $5,250 per year, with all contributions excluded from taxable income. The accounts must be held in trusts managed by banks, insurance companies, or other approved trustees, and funds can only be used for qualified education and training expenses as defined under existing tax law. If account holders withdraw money for purposes other than education before age 65, they must pay income taxes on the withdrawal plus an additional 20 percent penalty. The law takes effect for tax years beginning after December 31, 2025, and the Treasury Department has one year from enactment to issue regulations implementing the new accounts.
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