ASPIRE Act Frequently Asked Questions

The attached document answers the following questions about the America Saving for Personal Investment, Retirement, and Education (ASPIRE) Act:

1. What does the bill do?
2. Why is a bill to promote asset building for children necessary?
3. Who is eligible? Will illegal immigrants or children who become citizens get accounts?
4. Will children born before the bill takes effect get accounts?
5. Why do wealthy people get these accounts?
6. Why do poor people who don’t pay taxes get accounts?
7. Is it unrealistic to expect those with low incomes to save when they already struggle to get by?       
8. How much money will the government put into an account?
9. How much of the benefits will go to lower-income families?
10. Will assets in the accounts penalize people applying for public assistance?
11. Who can contribute to the accounts?
12. Why is there a limit on private contributions to the account?
13. Who will control the accounts?
14. How much will this cost?
15. Can America really afford this? How is this paid for?
16. Are there restrictions on account withdrawals? How can money in the account be used?
17. How will the account be taxed?
18. Why is there a minimum account balance, even after age 18?
19. Has this been done before?
20. How do KIDS Accounts differ from the UK’s Child Trust Fund Accounts?
21. Will this raise college tuition?
22. What if my child needs money to pay for college before they are 18?
23. Who will manage this program?
24. Why can’t the private sector offer accounts?
25. Why not let the private sector handle accounts of those under 18?
26. How much can a child save in a KIDS Account? What will they have when they are 18?
27. Where will money in KIDS Accounts be invested?
28. How will this bill help promote financial literacy?
29. Who supports this bill?
30. What is the legislative strategy for moving this bill through Congress?
31. How is this year’s bill difference from previous versions?