And given that the growth in education costs continues to outstrip inflation, such tax-advantaged accounts may become a major source of school financing.
But be sure to hold these investments outside a tax-advantaged account because they are already tax-efficient.
Nearly 18.5 million American workers have these tax-advantaged accounts, and many millions more will doubtless soon join them.
One potential way around the problem is to keep these funds in an individual retirement account or another tax-advantaged account.
His proposal would allow workers to increase their savings substantially in tax-advantaged accounts.
One school of thought advocates putting higher-return assets (such as stocks) in the tax-advantaged accounts.
Although this is an evolving debate, the best and most current critical thinking supports sheltering the tax-inefficient assets in the tax-advantaged accounts.
How would the Government prevent families from borrowing on their credit cards to deposit money into the tax-advantaged accounts?
The reason, he theorized, is that many people do not use tax-advantaged accounts to save more money.
Instead, they simply move their existing savings into new tax-advantaged accounts when the opportunity arises.
