The HUSTLE Act creates a new tax-advantaged investment account called a "NIL Investment Account" designed to help college athletes save and grow earnings from their name, image, and likeness (NIL). Eligible student-athletes at participating colleges can contribute their NIL income, exclude it from federal taxes and self-employment taxes for up to five years, and receive preferential tax treatment on investment gains after graduation. The accounts offer flexibility through features like rollovers between accounts, the ability to convert balances to traditional or Roth IRAs upon retirement (up to $35,000 lifetime), and penalty-free withdrawals for qualified expenses such as education and career training. Participating institutions must provide athletes with educational materials on investing and financial planning, and the Treasury Secretary will issue regulations to oversee account administration and fraud prevention. The tax provisions take effect for tax years beginning after December 31, 2025.
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