President Bush proposing new retirement accounts

Northwestern Financial Review, Mar 1-Mar 14, 2003

The White House is proposing to create two new tax-deferred savings accounts that don't offer tax deductions for contributions but allow the funds to grow tax-free and be withdrawn without taxes. President Bush's fiscal year 2004 budget will contain a plan to create "lifetime savings accounts," which can be used for any type of savings, and "retirement savings accounts," from which money can be withdrawn after a taxpayer reaches age 58.

People can withdraw money tax-free at any time from the lifetime savings accounts. Taxpayers will be able to convert existing IRAs into these new accounts.