Rep. Harshbarger Announces Bill Introducing USAs

If US Rep. Diana Harshbarger gets her way, her constituents will soon have another way to save money, but without the government nosing in. Harshbarger and US Senator Ted Cruz have introduced legislation that would create what would be called USA’s, or Universal Savings Accounts. Harshbarger says that the accounts would be similar to a Roth IRA, as money being contributed to the account could be taxed. However, any gains made in the account, could not be taxed. Harshbarger also says there would be no age minimum for withdrawals and no penalty for withdrawing funds.

Right now, with a traditional IRA or 401k, funds cannot be withdrawn without a penalty till the account holder turns 59 1/2 years of age. Any monies withdrawn are then subject to a tax. Rep. Harshbarger says the money in USA’s could be used for more than just retirement.

In a statement announcing the legislation, Harshbarger stated that “Washington shouldn’t be in the business of micromanaging how people use their own money”. She continued saying “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.”