The 401Kids Savings Act would create savings accounts for newborns. While state child savings accounts have shown promise, inflation and taxes prompt concerns.
You are not required to contribute the maximum. Some of the programs only required $5 for an count. Saving some, even a little, is better than saving nothing.
But it doesn’t do anything about inequality. Rich kids will have an even bigger tax shelter to retire on while poor kids will have nothing. This is a tax break for the wealthy.
Most of us don’t have $2500 per year to save !!!
That’s good, it means the cap won’t restrict what you can save for your children.
You are not required to contribute the maximum. Some of the programs only required $5 for an count. Saving some, even a little, is better than saving nothing.
But it doesn’t do anything about inequality. Rich kids will have an even bigger tax shelter to retire on while poor kids will have nothing. This is a tax break for the wealthy.
The income cap for it is pretty low so wealthy people would not be able to put into it.
But they already don’t need it lol
That’s the point the poor kids stay poor and the rich kids stay rich. How does this solve the issue it’s trying to fix?