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Wealth inequality starts at birth. Lawmakers debate whether child savings accounts can help

cnbc.com
submitted
a year ago
bygetthatmoneyyotopersonalfinance

Summary

The 401Kids Savings Act would create savings accounts for all newborns. Low- and moderate- income families would receive federal contributions. Children in households that qualify for the earned income tax credit would receive additional aid. Children's savings accounts are currently available statewide in seven states.

The 401Kids proposal calls for children to only have access to the funds once they turn 18. The money would have to be used for education, training, a home purchase or to start a business. The funds could also be rolled over to a Roth individual retirement account or ABLE account for children with disabilities.

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2 Comments

2
joseph
a year ago
This would be such an amazing incentive to actually put money away into a separate account for your kids. I'm guessing there would be income limits
1
boredgamer
a year ago
If only people had all this extra money to put into these accounts to save. Maxing out a regular 401K or IRA is already hard enough.