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
