A Look at Bush's One-Size-Fits-All Retirement Plan

It's no wonder Americans are often befuddled by questions regarding the best way to save for retirement. Not only are there multiple IRAs to choose from, but employer-sponsored plans also come in all shapes and sizes -- 401(k), 403(b), 457, SEP-IRA, SIMPLE 401(k).

If President Bush's budget proposal goes through, though, all those variations will be consolidated into one pan-employer plan -- the Employer Retirement Savings Account.

But as we've all learned at one time or another, one size does not really fit all. A closer look at the proposal reveals some, er, irregularities.

Flexibility or a Straitjacket?

Employer Retirement Savings Accounts, or ERSAs -- not to be confused with ERISA, the Employee Retirement Income Security Act -- are similar in design to 401(k)s, but with broader application. ...