WASHINGTON – Deputy Treasury Secretary Samuel Bodman joined SamJohnson (R-Texas) and Sen. Craig Thomas (R-Wyo.) at a March 31press conference introducing new legislation that aims to implementPresident Bush's proposal to create the Lifetime Savings Account.LSAs would allow everyone to contribute up to $5,000 each year tothe account regardless of age or income status. Individuals will beable to convert existing tax-preferred savings into these newaccounts in order to “consolidate and simplify their savingsarrangements,” Bush has said. “Over the last several years, thepersonal savings rate has been on a steep decline,” Bodman said.“In 2002, the personal saving rate was revised down 1.4 points,from 3.7% to 2.3%. This is not acceptable. We must reduce thebarriers to savings – and the simplicity and flexibility of LSAsdoes just that.” Bush has also proposed other savings accountsincluding an employer retirement savings account (ERSA) that wouldconsolidate 401(k), SIMPLE 401(k), 403(b), and 457 employer-baseddefined contribution accounts into a single plan for employers.NAFCU has expressed its support for LSAs.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.