new proposed savings accounts

[wabmester]

Woohoo, if passed it looks like this puppy will allow us to tax shelter more of our investments:

http://www.treas.gov/press/releases/js1131.htm

I wonder if the terms of the LSA mean that spouses can contribute to one another's accounts.

[ordway]

Quote:

I wonder if the terms of the LSA mean that spouses can contribute to one another's accounts.

It would seem that way:

"Contribution limit of $5,000 applies to the individual owner of the account, not the contributor. Contributors could make annual contributions to the accounts of other individuals."

My bet is that there's absolutely no way this will get enacted. If it did, I'd certainly take advantage of it! But my cynical take is that most people wouldn't. It's not like most people even max out their contributions to 401ks and IRAs... and most people I know don't even make *any* contribution (or really understand) to an IRA.

[sfoyoung88]

I have been dreaming of the lifetime savings account since Bush announced it ages ago. Unfortunately, it does not have any more support in Congress than it did last year. I would love to put my REITs in the LSA and get the dividends tax free. Yea, only 5K can go in a year but after a few years you are talking real money.

SFO