Does the ERSA proposal have any effect on defined benefit plans?
No, the proposal would not affect the rules applicable to defined benefit plans. LSA/RSA Provisions I have been contributing to IRAs for years. Will I have to stop? After 2003, you will no longer be able to contribute to an IRA. However, your ability to contribute to both an LSA and an RSA will give you much more flexibility to save for your future. You will be able to save up to $7,500 (indexed in the future for inflation) in an LSA plus up to $7,500 (indexed in the future for inflation) in an RSA for a total of $15,000 in tax-preferred savings. In addition, you will have much more flexibility to take distributions for what you deem appropriate when you deem it appropriate. Will there be any income limitations on making contributions to LSAs or RSAs? There are no income limitations on making contributions to LSAs. You can make a contribution to an LSA even if you have no wage income. Thus, you can make contributions on behalf of your children or other family members, in order to help
