WASHINGTON – Deputy Treasury Secretary Samuel Bodman joined Sam Johnson (R-Texas) and Sen. Craig Thomas (R-Wyo.) at a March 31 press conference introducing new legislation that aims to implement President Bush’s proposal to create the Lifetime Savings Account. LSAs would allow everyone to contribute up to $5,000 each year to the account regardless of age or income status. Individuals will be able to convert existing tax-preferred savings into these new accounts in order to “consolidate and simplify their savings arrangements,” Bush has said. “Over the last several years, the personal 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 the barriers to savings – and the simplicity and flexibility of LSAs does just that.” Bush has also proposed other savings accounts including an employer retirement savings account (ERSA) that would consolidate 401(k), SIMPLE 401(k), 403(b), and 457 employer-based defined contribution accounts into a single plan for employers. NAFCU has expressed its support for LSAs.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2022 ALM Global, LLC. All Rights Reserved.