Washington (Feb. 5, 2003) -- The Treasury Department said that the President's Budget would include two new expanded savings proposals covering all Americans.
The first creates two new consolidated savings accounts--Lifetime Savings Accounts (LSAs) and Retirement Savings Accounts (RSAs) that will allow everyone to contribute, with no limitations based on age or income status. Individuals will be able to convert existing accounts into these new accounts in order to consolidate and simplify their savings.
"These bold new accounts will give more hardworking Americans the chance to save so they can enrich their lives and strengthen their retirement security," stated Treasury assistant secretary for tax policy Pam Olson. "No longer will individuals have to worry about the confusing alphabet soup of six different savings accounts."
The second proposal creates Employer Retirement Savings Accounts (ERSAs) to promote and vastly simplify employer sponsored retirement plans by consolidating 401(k), SIMPLE 401(k), 403(b), and 457 employer-based defined contribution accounts into a single type of plan that can be more easily established by any provider.
-- Electronic Accountant Newswire staff
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access