Federal Investment Accounts for Children Launched, Drawing Contributions

Why it matters locally: While no specific impact can be determined yet, the launch of federal tax-advantaged investment accounts for children could offer new financial planning opportunities for families across South Carolina.

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WASHINGTON – Federal tax-advantaged investment accounts for children have officially opened. Eighty-seven entities, comprising companies, foundations, individuals, and states, have announced contributions to these new accounts. Economic correspondent Paul Solman has begun analyzing whether these accounts can fulfill the benefits their creators promote. These accounts represent the first federal tax-advantaged investment option specifically designed for children.