“In the first year of private accounts, people would be allowed to divert up to 4 percent of their wages covered by Social Security into what Bush called "voluntary private accounts." The maximum contribution to such accounts would start at $1,100 annually and rise by $100 a year through 2016.”Sounds like a good start. $1000-1600 per year is not a huge amount of money but with compounding (especially for young people) ...
I don't really understand how this works from the article, which makes it look like simply another tax-free account? From what is posted, it doesn't at all seem to divert money that would otherwise be going into Social Security into private accounts. Does anyone have a link to the actual law everyone is flailing each other about?