NEW YORK (CNN/Money) - Two Congressmen are proposing changes to savings plans that would streamline those previously made by President Bush and allow individuals to contribute more toward their 401(k) and individual retirement accounts, according to a published report Thursday.

Representatives Rob Portman, a Texas Republican, and Benjamin Cardin, a Maryland Democrat, are preparing legislation that would allow individuals to increase their IRA retirement plan contributions to $5,000 for those under age 50 and $6,000 for those over 50, the Wall Street Journal reported.

The limits for IRAs currently stand at $3,000 for those under 50 and $3,500 for those over 50.

In addition, the proposal would boost the amount individuals could contribute to 401(k) plans to $15,000 for those under 50 and $20,000 for those over 50, the paper reported. Limits for 401(k) plans now stand at $12,000 for those under 50 and $14,000 for those over 50.

Other key proposals in the legislation include: an increase in the age at which individuals must start withdrawing savings from IRAs to 75 from the current age of 70-1/2 and a modification of flexible spending accounts that would allow $500 in unused funds to be transferred to retirement plans.

President Bush's previous proposals for retirement revamped entire plans and created new "lifetime savings accounts," "retirement savings accounts" and "employer retirement savings accounts."

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Critics of the current retirement system contend that its complexity discourages employers from offering retirement plans.

"It's an important reason why only 50 percent of working Americans have any pension plan at all," Pam Olsen, Treasury assistant secretary for tax policy, told the Journal. "I'm confident that simpler rules will encourage employers to create new plans for their employees, because creating a qualified plan will be much easier."