Lifetime Savings Account Bill
Introduced In Congress
Legislation opposed by the life insurance industry creating tax-favored individual savings accounts has been introduced in Congress.
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The legislation, S. 2263, is based on a savings proposal developed by the Bush administration called Lifetime Savings Accounts.
Under the legislation, individuals would be able to put up to $5,000 annually in an account, earn interest tax-free and withdraw the money at any time for any reason without penalty.
The legislation is sponsored by Sen. Craig Thomas, R-Wyo., and Rep. Sam Johnson, R-Texas, and is backed by the Bush administration.
Deputy Treasury Secretary Samuel W. Bodman, who spoke at a press event, praised the concept of LSAs.
LSAs, he said, will help millions of families pursue the American dream. They will also allow individuals and families the flexibility to save for emergencies and to enhance their retirement savings, Bodman said.
He noted there has been a steep decline in personal savings.