In my Coverdell search, I found a bill that I guess didn't pass.links to Bill Text 112th Congress (2011-2012) H.R.37.IH named "401Kids Family Savings Act of 2011" which includes:
Changing the Coverdell name to "401Kids Savings Account"
Allowing distributions from this account to be permitted for first time
The rolling from these accounts to Roth IRAs.
Aside from the obvious fact that this didn't pass, I wonder if any bill
will simplify instead of obfuscating. The subtle differences between one
type of account and another create confusion and chances for mistakes.
The interplay between Employer based accounts (401(k) 403(b), etc) and
the Individual accounts are beyond any simple understanding.
The phaseouts by income and the need to recharacterize or withdraw is
one issue for those who don't know their precise income in advance.
I live in Massachusetts and frequently pass Walden pond on the way
to/from work. As I pass, I mumble "simplify, simplify, simplify." Has
congress read Thoreau?
- posted 8 years ago