re: Congress is considering big changes to the way you retire

quote:

---

The system needs to be simpler, not more complicated. Eliminate all tax incentives for retirement accounts and reduce the income tax by an equitable amount.

I should be able to save how I want and where I want without having to play all these games with pre/post tax savings, contribution or withdrawal limits and estate planning.

---

I don’t really disagree with this; however, with one major caveat that was actually on the table in Congress last year but I haven’t hear anything since: a universal saving account that doesn’t tax contributions, gains, or withdrawals and no requirements regarding when, who, how, or why it’s used.

There are so many unknowns for people trying to save and invest and so many unique circumstances that change but with so many specific options for specific purposes, it almost discourages people from using a lot of them.

I know I’m struggling with the the 529 plan, trying to determine the educational costs of an almost 3-year-old and an unborn child, 15-20 years from now. What if I max it out and they don’t even need it (scholarships, don’t go to college), but that if I don’t contribute enough and they miss out on an opportunity or have to take out more loans than would be required?