Americans are struggling to save any money, let alone enough for major bills like tuition, a home or retirement. A new government initiative has the right objective but the wrong solution.

"Trump accounts," created in last year's reconciliation bill, will become available July 4 to encourage families to accrue savings by investing in low-fee index funds for kids. Each account opened for a child born through 2028 will receive a $1,000 bonus. Relatives, friends, employers, and state governments can deposit up to a combined $5,000 per year.

After the child turns 18, the account will be converted into a traditional retirement plan, with one exception: Funds can be withdrawn, penalty-free, for tuition, a new home or to start a business.

It's a laudable goal. Although the stock market is a wealth-creation machine, some 38 percent of adults are missing out. Ensuring more of them reap the advantages makes sense. But Americans already have access to at least 11 other tax breaks designed to encourage savings. These cost hundreds of billions of dollars a year, but mostly reward people with higher incomes.

Trump accounts are unlikely to improve on this. Enrolling requires parents to navigate a newly created tax form or website, likely creating a barrier to families that lack time or financial aptitude to participate.

A second flaw is that the proposal is quite expensive--$15 billion over four years--but disproportionately benefits the rich.

This is needlessly complicated. The goal should be straightforward: Make it easier for Americans of every income level to save.

To that end, Congress should consolidate the many federal savings options into a single universal account, where savers can deposit post-tax dollars that can be withdrawn tax-free at any time. A bill introduced in Congress last year creating accounts with a $10,000 initial contribution limit, increasing each year up to a $25,000 cap, is on the right path.

© Arkansas Online