Universal Savings Accounts
Unlike IRAs, would the proposed Congressional bill for Universal Savings Accounts allow the use of unearned income and savings to fund them (e.g, interest income, after-tax savings, Social Security benefits)? Thanks.
Unlike IRAs, would the proposed Congressional bill for Universal Savings Accounts allow the use of unearned income and savings to fund them (e.g, interest income, after-tax savings, Social Security benefits)? Thanks.
Permalink Submitted by Alan - IRA critic on Thu, 2025-01-16 11:05
Under the most recent proposal it appears that there will be a MAGI cap on contributions, but no mention of an earned income requirement. However, these accounts will add to the national debt over the long term.
Another question is whether these accounts would all be held at banks, who are notorious for paying low interest rates.