Bush Plan Even Has Something for the (Rich) Kids

"Cash is king here in Washington," Oschenschlager says. "And if people convert to these new accounts, they're basically volunteering to pay taxes. The proposal holds a lot of appeal in that regard."

There's still some confusion as to the details of the plan, and answers aren't likely to come quickly. How existing deductible IRAs that don't get converted will be treated remains to be seen. Also unclear is whether LSAs and RSAs will be governed by the same rules IRAs are. For instance, investors are not able to short stocks or hold options in their IRAs, and it's unclear what the rules will be for these new accounts.

But as with everything that comes out of Washington, there's a lot more that we'll hear before we hear the final word.

>To order reprints of this article, click here: Reprints