Two New Tax Advantaged Investment Accounts You Need to Know About

Recently, while reading Burton Malkiel’s book, A Random Walk Guide to Investing, I came across a description of two new types of investment accounts that George Bush was helping to develop when the book was published. These two types of accounts could potentially be added to your overall investment mix of stocks, bonds, or buying gold as an investment.

The two types of accounts are listed below, along with descriptions of their features:

  • Retirement Savings Account
    • Designed to replace Roth IRAs
    • Allow each individual to contribute up to $7,500 per year. Has to be earned income.
    • No tax deduction when funds placed in to account. No tax held upon withdrawal in retirement.
  • Lifetime Savings Account
    • Each individual in a family could contribute up to $7,500 per year, irregardless of the source (i.e. does not have to be earned income).
    • No tax deduction when funds placed in to account. No tax held upon withdrawal in retirement.

These two types of accounts could give a serious tax advantage to the individual investor that knows about them and uses them effectively.

While reading this, I began to wonder what the status was for these types of accounts. Did a law ever pass allowing these accounts? Are they still being debated?

In searching around the internet a little, I could find no evidence that these types of accounts were ever enacted or if they are actively being debated.

Does any one out there reading this know about the status of these account types? They should like they would be quite attractive options!

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