The Bush administration has included many provisions of interest to life and health insurers in its 2006 budget proposal.[@@]
The administration proposals section of “Analytical Perspectives, Budget of the United States Government, Fiscal Year 2006,” calls for the following:
- Combining 401(k) plans, 403(b) plans and other employment-based savings accounts to form a single set of Employee Retirement Savings Accounts. A safe harbor option would protect employers from antidiscrimination rules if they provided a 50% match on elective contributions up to 6% of compensation.
- An above-the-line tax deduction for individuals who buy high-deductible health insurance that is compatible with health savings accounts and a refundable tax credit for small employers’ contributions to employees’ HSAs.
- Unlimited tax-free withdrawals from individual retirement accounts when the IRA assets are given to charity.