“Universal savings accounts, or tax-free savings accounts as they are called in Canada, are tax-advantaged savings accounts that allow individuals to deposit their money, invest in stocks and bonds, and withdraw their funds for any reason, without restrictions or penalties. The earnings are treated like a Roth 401(k) or individual retirement account, taxed once when the money is deposited and tax-free when withdrawn. The United Kingdom has a nearly identical savings account, named individual savings accounts.
“Our conversation will explore who uses these accounts in Canada and the UK, their experience, and what the experts have found from the data. Drawing on this evidence, we will discuss the possibilities for universal savings accounts in the United States, how they might work, and their status in Congress.”
How should we provide benefits to gig workers? – Jonathan Gruber/Brookings