The legislation would also allow parents, grandparents, and others to make contributions to that Roth IRA to help create a head start on a lifetime of savings and investing. Those who contribute to a child's Roth IRA would be able to receive the federal government's existing Retirement Savings Tax Credit, which would be made permanent with the legislation.

"Roth IRAs are simple and proven investment vehicles that are already helping millions of Americans save and invest in their futures in a tax-friendly way," said Mack. "For example, if $1,000 is invested into a Roth IRA for a person who is born this year, and $1,000 is invested every year until that person reaches retirement, that person would have accrued $2,329,247 [future value] in savings, assuming an eight percent annual return."

In addition, the legislation would raise the cap on income to receive the credit to $95,000 for single filers and $150,000 for joint filers -- the same as the cap to contribute to a Roth IRA. It would also raise the Retirement Savings Tax Credit one can receive in a year to $1,500 for individuals and $3,000 for joint filers.

Mack is the son of former Senator Connie Mack, who currently resides on President Bush's nine-member tax reform commission.