According to a news release on US Representative Connie Mack’s (R-Florida) Web site, H.R. 3574 , called the Lifetime Prosperity Act of 2005, includes:
- making the Retirement Savings Tax Credit permanent
- eliminating the progressive scale for the Retirement Savings Tax Credit and allowing all filers eligible for the credit to receive a 50% credit for their contribution
- raising the cap on income to receive the credit to $95,000 for single filers and $150,000 for joint filers – the same as the cap to contribute to a Roth IRA
- raising the Retirement Savings Tax Credit one can receive in a year to $1,500 for individuals and $3,000 for joint filers.
The bill is being touted because it provides for Roth IRAs to be owned by children of any age and provides a tax credit for contributions made to Roth IRA accounts for children up to the age of 25.
The bill has been sent to the House Ways and Means Committee.