Retirement Savings Accounts: President's Budget Proposal for FY2006

Publication Date: February 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

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Abstract:

The President's proposed budget for FY2006 would establish Lifetime Savings Accounts (LSAs) that could be used for any type of saving, and from which withdrawals could be made at any time, and Retirement Savings Accounts (RSAs) that could be used for retirement saving. In addition, beginning in 2006, several kinds of employersponsored retirement plans would be consolidated into Employer Retirement Savings Accounts (ERSAs). Qualification rules in the tax code would be simplified, while other rules governing ERSAs would conform substantially to those that apply to 401(k) plans. This report will be updated as further legislative developments occur.