Details Given on New Plans to Aid Saving New York Times (02/01/03) ; Walsh, Mary Williams
President Bush has offered details about two new types of savings accounts that are specially designed to help people build wealth. A unique aspect of the plans is the tax advantage. Under the Lifetime Savings Account, for example, a person could contribute $7,500 each year and generate investment income tax free. The person would also have the option to withdraw the money for any use, without any age stipulation and tax penalty. The same could be done with a Retirement Savings Account (RSA), which would replace individual retirement accounts or Roth accounts. Under the RSA plan, savers would be free to withdraw from their savings plan starting at age 58, without taxes and penalties.