Conservative congressmen in each chamber Tuesday introduced a package of legislation designed to boost retirement savings.[@@]
The package includes bill that would create lifetime savings accounts, something the insurance industry strongly opposes.
The bill was introduced in the Senate by Sen. Craig Thomas, R-Wyo., and in the House by Rep. Sam Johnson, R-Tex.
Besides creating LSAs, the legislation would create retirement savings accounts, which would simplify the current individual retirement account program, and employer retirement savings accounts, which would streamline current workplace savings programs, such as 401(k)s and 403(b)s.
In introducing the bills, Sen. 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.”