Conservative congressmen in each chamber have introduced a package of legislation designed to boost retirement savings that includes creation of Lifetime Savings Accounts, something the insurance industry strongly opposes.
The bills were introduced in the Senate by Sen. Craig Thomas, R-Wyo., and in the House by Rep. Sam Johnson, R-Texas.
Besides creating LSAs, the bills would create Retirement Savings Accounts, which would simplify the current Individual Retirement Account program, and Employer Retirement Savings Accounts, which would streamline workplace savings programs, such as 401(k)s and 403(b)s.
In introducing the bills, Thomas said, “Our tax code is entirely too complex and contributes to lack of participation in the tax-preferred vehicles that already exist. These bills, by allowing individuals to accumulate tax-free interest and by streamlining current savings vehicles, represent an important step toward fundamental tax reform.”
Moreover, he said, “as the Social Security system strains under increasing pressure, it is even more important that we provide a better, more responsive, simpler system for Americans to accumulate personal savings for retirement.”