What’s all the Buzz About Tax-free Universal Savings Accounts?
There has been talk since 2002 of creating Universal Savings Accounts, or USAs, as they’re called. What do you need to know about them?
Currently, Roth IRAs are the most popular tax-free savings account, but they have limitations that can be addressed with a USA. You can only contribute to a Roth IRA if you’re making less than $160,000 as a married couple or $110,000 if you’re single. Your annual contributions are limited to $5,000 if you’re under age 50. If you take distributions before your Roth IRA is five years old or before you turn 59½, you’ll pay a 10% tax penalty (with some exceptions). Read more »
