How Rich will a MAGA Account make a Baby?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The proposal also allows people to put $5,000 tax-free into these accounts every year until their kid is 31, as it's currently drafted — so this is basically just another tax shelter for high-income families.

What is the "tax free" part? The parent's aren't taxed on the $5K if they put it into one of these accounts?

No the contributions would be post-tax, but the growth would be tax-free like a Roth IRA. But you could do it for a kid who has no earnings of their own, and it wouldn't be restricted to education expenses like a 529.

Right, so if your parents can afford it, you can have 30 years worth of compounded gains on $155,000 in contributions and pay no taxes on the growth. Pretty good deal! If you happen to come from a family with $5,000 to burn every year.

[Anonymous]

Is there a way to cash out my SS and let me invest now?