Bush asks for tax changes to encourage savings, retirement planning [View All]

[Judi Lynn]

Bush asks for tax changes to encourage savings, retirement planning

MARY DALRYMPLE, AP Tax Writer
Monday, February 2, 2004


(02-02) 11:54 PST WASHINGTON (AP) --

Tax incentives for saving and retirement form the core of tax programs in the president's proposed budget, which also asks lawmakers to make recently passed tax cuts permanent reductions.

The president's 2005 budget asks Congress to consolidate a myriad of retirement savings accounts into two types, one for individuals and one for employees.

Taxpayers would be permitted to put up to $5,000 each year into their individual retirement savings accounts and into a lifetime savings account, which could be tapped for any reason. Bush had previously proposed that individuals be allowed to put as much as $7,500 into each account.

Lower-income individuals would be encouraged to save with a dollar-for-dollar matching contribution up to $500 for money deposited into individual development accounts, which could be tapped for retirement, education, business development and first-time home-buying.
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http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2004/02/02/national1149EST0590.DTL