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Not sure if this is the best board to post this, but oh well...

I seem to recall RSAs were touted as part of on of the Bush Tax cuts, but were later scrapped. It appears they are resurfacing. On the surface, these are fantastic savings vehicles. You can save 15K/year in after tax money that grows tax free. What's not to like about that??

Ah...the downside - Americans on average are not responsible enough to save. Some employers would likely do away with managing 401k plans and shift the investment responsiblity to their employees.

Personally, I don't have a whole lot of faith in the average American when it comes to managing his or her investment options. I would love to see RSAs become a reality, but I suspect it will be an uphill battle to connvince people that this is a better way to save for retirement.

Interested to know what others think.
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I thought it was a great idea last year when I first heard it. It's time to stop taxing savings and investment.

However, it appears there is little support for the plans this year.

For fools like us, who save as much as possible, an additional $15k (per year per person) would be a true boon.

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In general, I would favor anything that does not give a tax advantage to gambling in the stock market over more conservative investment/savings strategies.

However, there were several problems with the RSA plan touted last year. The first is the deficit. It would cost the treasury a lot of money in the long run, and there was no compensatory plan to raise taxes elsewhere.

The second problem was it would have eliminated a lot of the retirement tax deferral of salary options. In other words, there would have been an actual boost in taxes in the short run, because of less deferred tax money, though less revenue in the long run, since there would have been no tax on earnings. As with most Bush economic plays, it would be better for the young, but hard on those nearer retirement and near useless for those already living off savings.
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