The Bush Administration is not likely to pass the bold retirement savings proposal that it hoped would redefine the ways investors could save for retirement and other goals. A far more modest proposal is gaining ground in Congress that would simply lift the contribution ceilings within the current system, The Wall Street Journal reports.

The plan would provide tremendous incentives to save by enabling investors to save far more money than they can now save in tax-deferred accounts. It would allow tax-free withdrawals now and in retirement.

Due to preoccupation with the war and other domestic issues, retirement is not at the top of the Administration’s domestic to-do list at the moment.

"Our first priority is the President’s jobs and growth package," Tara Bradshaw, a spokeswoman at the Department of the Treasury, told WSJ. "After that’s passed, we’ll turn to other priorities in the budget."

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