'MAGA accounts' may be a great way to kickstart your kids' savings
The White House's MAGA accounts could help families save for their children's future.
The proposed House Ways and Means tax bill introduces a new type of investment account that could change how American families save for their children's future.
The legislation includes a provision to create a new tax-advantaged savings vehicle called the Money Account for Growth and Advancement, or what's being referred to as a "MAGA" account.
These accounts, according to Ben Henry-Moreland, a senior financial planning nerd at Kitces.com, aim “towards encouraging parents to provide some savings to their children that they can later use to go to college, start a business, or buy a home as young adults.”
Related: Social Security income tax cuts may include a huge new deduction for retirees
The proposal, according to some, including the Investment Company Institute, the lobbying group for the mutual fund industry, represents a significant addition to the landscape of tax-advantaged accounts available to American families.
It would join familiar vehicles like 529 plans, ABLE accounts, Roth IRAs, and custodial accounts.
