,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ebha ,,in ,,the ,,house ,,of ,,representatives ,july #cj1 #bjad ,mr4 ,hanna 7for himself and ,mr4 ,kind7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for tax preferred savings accounts for individuals under age #ah1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,young ,savers ,security in ,retirement ,act of #bjad4 #b4 ,findings ,congress finds the following3 7#a7 ,studies indicate that children as young as #c years old are able to grasp financial concepts and that basic financial habits are largely formulated by age #g4 7#b7 ,research shows that children born to low-income parents who are good financial savers are more likely to move up the economic ladder than children from low-income households that do not save4 ,according to a #bjaa study controlled for income and demographic factors1 youth who own financial accounts are #g times more likely to attend college4 7#c7 ,if tax-advantaged retirement accounts such as ,roth ,i,r,as could be opened for children between the ages of zero and #ah1 these individuals are likely to acquire substantially more tax-free assets by retirement age than their peers4 7#d7 ,children who possess retirement accounts from a young age will benefit from longer exposure to compound interest and can be expected to attain higher levels of financial literacy1 college graduation and retirement security in adulthood4 7#e7 ,greater private retirement savings for ,americans of all ages will increase personal financial security and responsibility1 reducing the likelihood that seniors will need to rely solely on ,social ,security for their retirement income4 7#f7 ,federal policy should better enable parents1 guardians and families of all income levels to encourage youth saving and investment for retirement at an earlier age4 7#g7 ,federal policy should help create retirement savings incentives for low-income ,americans because studies show that low-income ,americans will save more for retirement if there are incentives and structures in place to help them do so4 ,a refundable incentive like the ,saver's ,credit would reach #ej million low-income households--nearly #aj times the number a non-refundable credit reaches4 #c4 ,young savers account 7a7 ,establishment of accounts 7#a7 ,in general ,section #djh;,a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7g7 ,young savers account 7#a7 ,in general ,except as provided in this subsection1 a young savers account shall be treated in the same manner as a ,roth ,,ira4 7#b7 ,young savers account ,for purposes of this subsection1 the term young savers account means1 with respect to any taxable year1 a ,roth ,,ira which is maintained on behalf of an individual who has not attained age #ah before the close of the taxable year and which is designated 7in such manner as the ,secretary may prescribe7 at the time of establishment as a young savers account4 7#c7 ,contribution limits ,in the case of any contributions for any taxable year to #a or more young savers accounts maintained on behalf of an individual1 each of the following contribution limits for the taxable year shall be increased as follows3 7,a7 ,the contribution limit applicable to the individual under subsection 7c77#b7 shall be increased by the aggregate amount of qualified young saver contributions to such accounts for the taxable year4 7,b7 ,the contribution limits applicable to the young savers accounts under subsection 7a77#a7 or 7b77#b77;,b7 of section #djh1 whichever is applicable1 shall be increased by the deductible amount in effect under section #bai7;b77#e7 for such taxable year 7determined without regard to subparagraph 7,b7 thereof74 7#d7 ,qualified young saver contributions ,for purposes of this subsection-- 7,a7 ,in general ,the term qualified young saver contribution means a contribution by an individual 7with respect to whom a young savers account is not maintained during the taxable year7 to a young savers account maintained on behalf of another individual4 7,b7 ,limitations 7i7 ,limit on accounts with respect to individual ,the aggregate amount of contributions which may be made for any taxable year to all young savers accounts maintained on behalf of an individual shall not exceed the deductible amount in effect for the taxable year under section #bai7;b77#e7 7determined without regard to subparagraph 7,b7 thereof74 7ii7 ,limit on contributors ,the aggregate amount of qualified young saver contributions an individual may make for any taxable year to all young savers accounts shall not exceed the deductible amount in effect for the taxable year under section #bai7;b77#e7 7determined without regard to subparagraph 7,b7 thereof71 reduced by any contributions made by or on behalf of the individual to any ,roth ,,ira maintained on behalf of the individual4 4 7b7 ,eligible for ,savers ,credit ,paragraph 7#a7 of section #be;,b7d7 of such ,code is amended by striking and at the end of subparagraph 7,b77ii71 by striking the period at the end of subparagraph 7,c7 and inserting 1 and1 and by adding at the end the following new subparagraph3 7,d7 the amount of any contribution to a young savers account4 4 7c7 ,refund payable to ,young ,savers ,account 7#a7 ,in general ,subchapter ,b of chapter #fe of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #fdcc4 ,young savers account refund payment ,in the case of any overpayment 7or portion thereof7 which is attributable to a credit allowed to an individual under section #be;,b by reason of a contribution to a young savers account1 the ,secretary shall pay the amount of such overpayment 7or such portion7 into the young savers account to which such contribution was made4 ,the ,secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section4 4 7#b7 ,clerical amendment ,the table of sections for subchapter ,b of chapter #fe of such ,code is amended by adding at the end the following new item3 ,sec4 #fdcc4 ,young savers account refund payment4 4 7d7 ,young savers account information included with application for social security card ,the ,commissioner of ,social ,security1 in consultation with the ,secretary of the ,treasury1 shall include with materials relating to the application for a social security card information describing young savers accounts 7as defined in section #djh;,a7g77#b7 of the ,internal ,revenue ,code of #aihf7 and related tax benefits4 7e7 ,account funds disregarded for purposes of all means tested federal programs ,notwithstanding any other provision of ,federal law1 assets accumulated in young savers accounts 7within the meaning of section #djh;,a7g7 of the ,internal ,revenue ,code of #aihf7 shall not be taken into account in determining any individual's or household's financial eligibility for1 or amount of1 any benefit or service1 paid for in whole or in part with ,federal funds1 including student financial aid4 7f7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4