Saving for, well, just about anything could come with a tax break if House Republicans get their way.
GOP lawmakers are supporting the creation of Universal Savings Accounts as part of their so-called Tax Reform 2.0 effort, according to a two-page overview released by the House Ways and Means Committee on Tuesday. These accounts, which Congress has explored in past legislation, would be tax-advantaged ways to save for future expenses outside of retirement.
The idea is to give people a way to save tax-advantaged money for the long-term without restrictions on when (or why) they can make use it. In other words, there would be no early-withdrawal penalties, which come with retirement accounts such as 401(k) plans and individual retirement accounts.