Justin Wolfers: What the White House Isn't Telling You About Trump Accounts

[Raftergirl]

9. It's just another tool in the tool box a parent can use.

If you have a child born in the applicable years to get the $1k, it’s a no brainer.

Grandparents can also contribute money into the account.

Birthday money given to kid, you can put that in too. Kid shovels the neighbors driveway, earns $25, that can go in there, too. It certainly is better than a savings account.

It’s very easy to sign up and the app is very easy to use.

Once the child is 18, and takes control of the account, they can convert it to a Roth. Most 18 years olds have hardly any income, so likely the tax they would have to pay would be minimal or none at all. Then whatever is in there and any money after that can be withdrawn tax free after age 59. One can also withdraw the contributions anytime without a penalty,

Of course, you have to make sure you are funding your retirement first - or are we against that too because more of that benefit accrues to people in higher income brackets, too?

There are already other custodial accounts one can set up, and 529’s. Don’t just dismiss this because it has Donald’s name on it.

I swear it’s like people do not want to do anything that might help them or their kids because it helps wealthy people more.

Might as well just give up completely because wealthy people.