Oct. 9 (Bloomberg) -- Democratic presidential front-runner Hillary Clinton proposed new retirement savings accounts that would get matching tax credits from the U.S. government.

``These accounts will take the best of the 401(k) plans and make them available to every working family,'' Clinton said today during a speech in Webster City, Iowa. ``They will help families and individuals who are falling through the cracks.''

Americans would be allowed to contribute as much as $5,000 in tax-deferred funds each year to the ``American Retirement Accounts,'' Clinton said. Depending on household income levels, the government would then offer tax credits of as much as $1,000.

People would be able to take their accounts with them if they leave their jobs, according to the plan, which carries an estimated cost of $20 billion to $25 billion a year. Campaign officials said they believe companies will compete to administer the accounts, and Americans would also have an option similar to the retirement savings plan available to members of Congress.

To help pay for the plan, the New York senator said she would freeze the estate tax at 2009 levels, when it will only affect couples with assets of more than $7 million. President George W. Bush's 2001 tax-cut program has gradually reduced the estate tax and it is scheduled to be repealed for a year in 2010 unless Congress acts.

$100,000 or Less

While all Americans would be able to open one of the accounts, only couples making $100,000 or less would qualify for tax credits under the plan.

``It's focused on ensuring that we have a strong and secure middle class,'' campaign policy director Neera Tanden told reporters during a conference call.

Couples who make $60,000 or less a year would be eligible for a dollar-to-dollar match on the first $1,000 they put into the retirement account, Clinton said. Couples making between $60,000 and $100,000 a year would be eligible for a 50 percent match, or $500 on the first $1,000 deposited.

Clinton, 59, said she would encourage employers to offer a direct-deposit option into the new accounts.

The former first lady also spoke about Social Security today, saying she has a ``fundamental commitment'' to the program. ``We've got to fight and finally bury the idea of privatizing Social Security,'' she said.

Social Security

Clinton sidestepped a question on how she would keep Social Security viable during a Sept. 26 debate in Hanover, New Hampshire. She said that the country needed to focus on keeping spending in check and said she didn't want to tip her hand for possible future negotiations.

``I'm not putting anything on the proverbial table,'' Clinton said, when pressed on her positions.

Her top Democratic rivals, Illinois Senator Barack Obama and former North Carolina Senator John Edwards, said during that debate that they would consider lifting the cap on the amount of income that can be taxed for Social Security.

Clinton is on the last day of a campaign swing through Iowa focusing on economic issues. She plans to go to New Hampshire next, discussing ``jobs of the future'' on Oct. 10 and college affordability on Oct. 11, according to her campaign.

To contact the reporter on this story: Kristin Jensen in Washington at kjensen@bloomberg.net