SAVINGS PLANS LOSE OUT

Physician's Money Digest, June30 2003, Volume 10, Issue 12

Among the first casualties of thebattle over President Bush's taxreforms were proposals for sweepingchanges in tax-advantaged savingsaccounts. The plan was to simplifya dizzying array of IRAs, RothIRAs, and other types of accountsinto a couple of basic plans: aLifetime Savings Account, a kind ofsuper Roth IRA, and a RetirementSavings Account. Insiders note thatthe plan was developed under formerUS Treasury Secretary PaulO'Neill, with little input from theWhite House. After drawing firefrom a number of sectors, includingfinancial services and benefits consultingfirms that stood to lose businessif the new accounts were enacted,the Bush administration hasbacked off from these savingsreforms, at least for this year.