,,ii #aadth ,,congress #b;d ,session ,s4 #bdib ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #c1 #bjaf ,mr4 ,wyden 7for himself1 ,ms4 ,cantwell1 ,mr4 ,cardin1 ,mr4 ,brown1 and ,mr4 ,casey7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide matching payments for retirement savings contributions by certain individuals4 #a4 ,short title ,this ,act may be cited as the ,encouraging ,americans to ,save ,act4 #b4 ,matching payments for elective deferral and ,,ira contributions by certain individuals 7a7 ,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 ,matching payments for elective deferral and ,,ira contributions by certain individuals 7a7 ,in general 7#a7 ,allowance of credit ,any eligible individual who makes qualified retirement savings contributions for the taxable year shall be allowed a credit for such taxable year in an amount equal to the applicable percentage of so much of the qualified retirement savings contributions made by such eligible individual for the taxable year as does not exceed #a1jjj4 7#b7 ,payment of credit ,the credit under this section shall be paid by the ,secretary as a contribution 7as soon as practicable after the eligible individual has filed a tax return for the taxable year7 to the applicable retirement vehicle of an eligible individual4 7b7 ,applicable percentage ,for purposes of this section-- 7#a7 ,in general ,except as provided in paragraph 7#b71 the applicable percentage is #ej percent4 7#b7 ,phaseout ,the percentage under paragraph 7#a7 shall be reduced 7but not below zero7 by the number of percentage points which bears the same ratio to #ej percentage points as-- 7,a7 the excess of-- 7i7 the taxpayer's modified adjusted gross income for such taxable year1 over 7ii7 the applicable dollar amount1 bears to 7,b7 the phaseout range4 ,if any reduction determined under this paragraph is not a whole percentage point1 such reduction shall be rounded to the next lowest whole percentage point4 7#c7 ,applicable dollar amount2 phaseout range 7,a7 ,joint returns ,except as provided in subparagraph 7,b7-- 7i7 the applicable dollar amount is #fe1jjj1 and 7ii7 the phaseout range is #bj1jjj4 7,b7 ,other returns ,in the case of-- 7i7 a head of a household 7as defined in section #b7;b771 the applicable dollar amount and the phaseout range shall be #c_/d of the amounts applicable under subparagraph 7,a7 7as adjusted under subsection 7g771 and 7ii7 any taxpayer who is not filing a joint return and who is not a head of a household 7as so defined71 the applicable dollar amount and the phaseout range shall be of the amounts applicable under subparagraph 7,a7 7as so adjusted74 7c7 ,eligible individual ,for purposes of this section-- 7#a7 ,in general ,the term eligible individual means any individual if such individual has attained the age of #ah as of the close of the taxable year4 7#b7 ,dependents and full-time students not eligible ,the term eligible individual shall not include-- 7,a7 any individual with respect to whom a deduction under section #aea is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins1 and 7,b7 any individual who is a student 7as defined in section #aeb7;f77#b774 7d7 ,qualified retirement savings contributions ,for purposes of this section-- 7#a7 ,in general ,the term qualified retirement savings contributions means1 with respect to any taxable year1 the sum of-- 7,a7 the amount of the qualified retirement contributions 7as defined in section #bai7;e77 made by the eligible individual1 7,b7 the amount of-- 7i7 any elective deferrals 7as defined in section #djb7;g77#c77 of such individual1 and 7ii7 any elective deferral of compensation by such individual under an eligible deferred compensation plan 7as defined in section #deg7;b77 of an eligible employer described in section #deg7;e77#a77;,a71 and 7,c7 the amount of voluntary employee contributions by such individual to any qualified retirement plan 7as defined in section #digd7;c774 ,such term shall not include any amount attributable to a payment under subsection 7a74 7#b7 ,reduction for certain distributions 7,a7 ,in general ,the qualified retirement savings contributions determined under paragraph 7#a7 for a taxable year shall be reduced 7but not below zero7 by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph 7#a7 may be made4 7,b7 ,testing period ,for purposes of subparagraph 7,a71 the testing period1 with respect to a taxable year1 is the period which includes-- 7i7 such taxable year1 7ii7 the #b preceding taxable years1 and 7iii7 the period after such taxable year and before the due date 7including extensions7 for filing the return of tax for such taxable year4 7,c7 ,excepted distributions ,there shall not be taken into account under subparagraph 7,a7-- 7i7 any distribution referred to in section #gb7p71 #dja7k77#h71 #dja7m77#f71 #djb7;g77#b71 #djd7k71 or #djh7;d77#d71 7ii7 any distribution to which section #djh7;d77#c7 or #djh;,a7d77#c7 applies1 and 7iii7 any portion of a distribution if such portion is transferred or paid in a rollover contribution 7as defined in section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh;,a7e71 or #deg7;e77#af77 to an account or plan to which qualified retirement contributions can be made4 7,d7 ,treatment of distributions received by spouse of individual ,for purposes of determining distributions received by an individual under subparagraph 7,a7 for any taxable year1 any distribution received by the spouse of such individual shall be treated as received by such individual if such individual and spouse file a joint return for such taxable year and for the taxable year during which the spouse receives the distribution4 7e7 ,applicable retirement savings vehicle 7#a7 ,in general ,the term applicable retirement savings vehicle means-- 7,a7 an account or plan elected by the eligible individual under paragraph 7#b71 or 7,b7 if no such election is made1 a my,r,a established for the benefit of the eligible individual4 ,for purposes of subparagraph 7,b71 if no my,r,a has previously been established for the benefit of the individual1 the ,secretary shall establish such an account for such individual for purposes of contributions under this section4 7#b7 ,other retirement vehicles ,an eligible individual may elect to have the amount determined under subsection 7a7 contributed to an account or plan which-- 7,a7 is a ,roth ,,ira or a designated ,roth account 7within the meaning of section #djb;,a7 of an applicable retirement plan 7as defined in section #djb;,a7e77#a771 7,b7 is for the benefit of the eligible individual1 7,c7 accepts contributions made under this section1 and 7,d7 is designated by such individual 7in such form and manner as the ,secretary may provide7 on the return of tax for the taxable year4 7#c7 ,my,r,a ,for purposes of paragraph 7#a71 the term ,my,r,a means a ,roth ,,ira which is established-- 7,a7 under the my,r,a program established under regulations promulgated by the ,secretary1 and 7,b7 by the individual for whose benefit the ,roth ,,ira was created or by the ,secretary on behalf of such individual4 7f7 ,other definitions and special rules 7#a7 ,modified adjusted gross income ,for purposes of this section1 the term modified adjusted gross income means adjusted gross income-- 7,a7 determined without regard to sections #iaa1 #ica1 and #icc1 and 7,b7 determined without regard to any exclusion or deduction allowed for any qualified retirement savings contribution made during the taxable year4 7#b7 ,treatment of contributions ,in the case of any contribution under subsection 7a77#b7-- 7,a7 except as otherwise provided in this section or by the ,secretary under regulations1 such contribution shall be treated in the same manner as a contribution made by the individual on whose behalf such contribution was made1 7,b7 such contribution shall not be treated as income to the taxpayer1 and 7,c7 such contribution shall not be taken into account with respect to any applicable limitation under sections #djb7;g77#a71 #djc7;b71 #djh7;a77#a71 #djh7;b77#b77;,b71 #djh;,a7c77#b71 #dad7v77#b71 #dae7;c71 or #deg7;b77#b74 7#c7 ,treatment of qualified plans1 etc ,a plan or arrangement to which a contribution is made under this section shall not be treated as violating any requirement under section #dja1 #djc1 #djh1 or #deg solely by reason of accepting such contribution4 7#d7 ,erroneous credits ,if any contribution is erroneously paid under subsection 7a77#b71 the amount of such erroneous payment shall be treated as an underpayment of tax4 7g7 ,inflation adjustments 7#a7 ,in general ,in the case of any taxable year beginning in a calendar year after #bjag1 each of the dollar amounts in subsections 7a77#b7 and 7b77#c77;,a77i7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjaf for calendar year #aiib in subparagraph 7,b7 thereof4 7#b7 ,rounding ,any increase determined under paragraph 7#a7 shall be rounded to the nearest multiple of-- 7,a7 #ajj in the case of an adjustment of the amount in subsection 7a77#b71 and 7,b7 #a1jjj in the case of an adjustment of the amount in subsection 7b77#c77;,a77i74 4 7b7 ,promotion and guidance 7#a7 ,promotion ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall educate taxpayers on the benefits provided under section #fdcc of the ,internal ,revenue ,code of #aihf4 7#b7 ,guidance ,not later than ,december #ca1 #bjag1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall issue guidance on the implementation and administration of the amendments made by this section4 7c7 ,payment authority ,section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 is amended by striking or #fdca and inserting #fdca1 or #fdcc4 7d7 ,deficiencies ,section #fbaa7;b77#d7 is amended by striking and #fdca and inserting #fdca1 and #fdcc4 7e7 ,conforming amendments 7#a7 ,section #be;,b of the ,internal ,revenue ,code of #aihf is amended by striking subsections 7a7 through 7f7 and inserting the following3 ,for payment of credit related to qualified retirement savings contributions1 see section #fdcc4 4 7#b7 ,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 ,matching payments for elective deferral and ,,ira contributions by certain individuals4 4 7f7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4