In his 2007 budget proposal, President George Bush is looking to expand tax-free savings opportunities for investors in Coverdell education savings accounts and 529 college savings plans and at the same time permanently increase the amount workers can save in tax-qualified plans.

According to the Department of the Treasury's proposed bill, the underlying reason for the change is to encourage investors to save more by simplifying the wide array of educational savings choices and tax breaks available to them, while easing current restrictions in 529 and Coverdell plans.

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