WASHINGTON (WJHL) — Congresswoman Diana Harshbarger and Sen. Ted Cruz are spearheading the effort to create a new type of tax-advantaged savings account.
Harshbarger and Cruz filed companion bills on Thursday, introducing the Universal Savings Account (USA) Act.
Similar to Roth IRAs, contributions to the accounts could be taxed, but the growth of the funds in the account would not be taxed.
Additionally, USAs would have no age minimum, and there would be no penalty for withdrawing funds. If passed, the account funds could also be used for any purpose instead of just retirement.
Harshbarger said in a statement that the bill gives more power to American families and removes government oversight.
“It’s an honor to partner with Senator Cruz on this commonsense legislation to empower Americans to take control of their financial futures. The Universal Savings Account Act cuts through red tape and gives every American a flexible, tax-free way to save, invest, and spend — without government interference or penalties.
“Washington shouldn’t be in the business of micromanaging how people use their own money. This bill is a win for working families, a win for personal freedom, and a win for financial independence.”