,,ii #aafth ,,congress #b;d ,session ,s4 #ejce ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #af1 #bjbj,mr4 ,wyden 7for himself1 ,mr4 ,bennet1 ,mr4 ,brown1 ,mr4 ,casey1 ,ms4 ,cortez ,masto1 ,mr4 ,durbin1 ,ms4 ,klobuchar1 and ,mrs4 ,murray7 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 #b1jjj4 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 savings 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 7#d7 ,exception2 minimum credit ,in the case of an eligible individual with respect to whom 7without regard to this paragraph7 the credit determined under subsection 7a77#a7 is greater than zero but less than #ajj1 the credit allowed under this section shall be #ajj4 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 made or the ,secretary is not able to make a contribution into the account or plan selected by the eligible individual1 an account established for the benefit of the eligible individual under the ,r-,bond ,program4 ,for purposes of subparagraph 7,b71 if no account has previously been established for the benefit of the individual under the ,r-,bond ,program1 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 ,in the case of a plan of which a qualified trust under section #dja7;a7 is a part1 an annuity contract described in section #djc7;b71 or a plan described in section #deg7;b7 which is established and maintained by an employer described in section #deg7;e77#a77;,a71 amounts under this section may only be contributed to such plan if the plan document permits such contribution4 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 as-- 7i7 an elective deferral made by the individual which is a designated ,roth contribution1 if contributed to an applicable retirement plan1 or 7ii7 as a ,roth ,,ira contribution made by such individual1 if contributed to a ,roth ,,ira1 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#b71 and shall be disregarded for purposes of sections #dja7;a77#d71 #dja7k77#c71 #dja7k77#aa77;,b77i77,,iii71 and #daf4 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 #bjbj1 each of the dollar amounts in subsections 7a77#a7 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 #bjai for calendar year #bjaf in subparagraph 7,a77ii7 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#a71 and 7,b7 #a1jjj in the case of an adjustment of the amount in subsection 7b77#c77;,a77i74 4 7b7 ,payment authority ,section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 is amended by striking or #fdca and inserting #fdca1 or #fdcc4 7c7 ,deficiencies ,section #fbaa7;b77#d7 is amended by striking and #fdca and inserting #fdca1 and #fdcc4 7d7 ,reporting ,the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,director of the ,pension ,benefit ,guaranty ,corporation shall-- 7#a7 amend ,form #eejj to require separate reporting of the aggregate amount of contributions received by the plan during the year under section #fdcc of the ,internal ,revenue ,code of #aihf 7as added by this section71 and 7#b7 amend ,form #edih to require similar reporting with respect to individual retirement plans 7as defined in section #ggja7;a77#cg7 of such ,code74 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 #bjba4 7g7 ,coronavirus recovery bonus credit 7#a7 ,in general ,in the case of taxable years beginning after ,december #ca1 #bjba1 and before ,january #a1 #bjbg1 the amount of the credit determined under section #fdcc of the ,internal ,revenue ,code of #aihf1 as added by this section1 shall be increased by an amount equal to #ej percent of so much of the qualified retirement savings contributions made by an eligible individual for the taxable year as does not exceed-- 7,a7 #aj1jjj1 reduced by 7,b7 the aggregate amount of qualified retirement savings contributions made by the eligible individual in all preceding taxable years which begin after ,december #ca1 #bjba4 7#b7 ,definitions ,for purposes of this subsection1 the terms qualified retirement savings contributions and eligible individual have the meanings given such terms by subsections 7d7 and 7c71 respectively1 of section #fdcc of such ,code1 as so added4 #c4 ,establishment of ,r-,bond ,program 7a7 ,in general ,the ,secretary of the ,treasury shall1 not later than ,december #ca1 #bjbb1 establish a permanent program1 to be known as the ,r-,bond ,program1 which meets the requirements of this section to establish and maintain a ,roth ,,ira on behalf of individuals4 7b7 ,program specifications 7#a7 ,in general 7,a7 ,roth ,i,r,as ,the ,r-,bond ,program established under this section shall-- 7i7 permit an individual to establish a ,roth ,,ira which satisfies the requirements of section #djh;,a of the ,internal ,revenue ,code of #aihf on behalf of the individual2 7ii7 permit an employer to establish such a ,roth ,,ira on behalf of #a or more employees of such employer2 7iii7 require the assets of each ,roth ,,ira established under the program to be held by the designated ,roth ,,ira custodian2 7iv7 permit contributions to be made periodically to such ,roth ,i,r,as by direct deposit or other electronic means and by methods that provide access for the unbanked2 7v7 permit distributions and rollovers from such ,roth ,i,r,as upon request of the account owner2 7vi7 include procedures to consolidate multiple accounts established for the same individual2 and 7vii7 ensure that such ,roth ,i,r,as are invested solely in retirement savings bonds issued by the ,department of the ,treasury for the purpose of the ,r-,bond ,program4 7,b7 ,regulations1 etc ,the ,secretary of the ,treasury shall have authority to promulgate such regulations1 rules1 and other guidance as are necessary to implement the ,r-,bond ,program1 and are consistent with this section1 as well as coordination rules permitting ,roth ,i,r,as to be established under the ,r-,bond ,program in connection with ,state and local laws that enroll residents in ,roth ,i,r,as4 7#b7 ,no fees ,no fees shall be assessed on participants in the ,r-,bond ,program4 7#c7 ,limitations 7,a7 ,contribution minimum ,the ,secretary of the ,treasury may establish minimum amounts for initial and additional contributions to a ,roth ,,ira under the ,r-,bond ,program1 not to exceed #e4 7,b7 ,rollover contributions not permitted ,no rollover contribution shall be accepted to a ,roth ,,ira under the ,r-,bond ,program4 7,c7 ,account maximum ,no contributions 7other than a contribution made under section #fdcc7;a77#b7 of the ,internal ,revenue ,code of #aihf1 as added by this ,act7 shall be credited to a ,roth ,,ira under the ,r-,bond ,program after the account balance of such ,roth ,,ira reaches #ae1jjj4 7,d7 ,limitation on participation ,within a reasonable amount of time after the earlier of-- 7i7 the date the account balance of a ,roth ,,ira under the ,r-,bond ,program reaches #ae1jjj2 or 7ii7 the earlier of-- 7,i7 the date that the participant has been a participant in the ,r-,bond ,program for #cj years2 or 7,,ii7 the date that the participant reaches age #eia_/b1 the designated ,roth ,,ira custodian shall provide notice to the participant that no further contributions will be accepted and that the participant may elect to have the account balance rolled over to another ,roth ,,ira according to the rules relating to rollovers and transfers of ,roth ,i,r,as under the ,internal ,revenue ,code of #aihf4 7,e7 ,adjustment for inflation 7i7 ,in general ,in the case of any calendar year after #bjbc1 the #ae1jjj amount in subparagraphs 7,c7 and 7,d7 and subsection 7c77#c77;,b7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 of the ,internal ,revenue ,code of #aihf for the calendar year1 determined by substituting calendar year #bjbb for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7ii7 ,rounding ,if any increase determined under clause 7i7 is not a multiple of #ej1 such increase shall be rounded to the next lowest multiple of #ej4 7#d7 ,designated ,roth ,,ira custodian ,for purposes of this section1 the designated ,roth ,,ira custodian is the person designated by the ,secretary of the ,treasury to act as custodian of the ,roth ,i,r,as established on behalf of participants in the retirement savings program of such ,department4 7c7 ,retirement savings bonds ,for purposes of this section-- 7#a7 ,in general ,the term retirement savings bond means an interest-bearing electronic ,united ,states savings bond issued to the designated ,roth ,,ira custodian which is available only to participants in the ,r-,bond ,program4 7#b7 ,interest rate ,bonds issued under the ,r-,bond ,program shall earn interest at a rate equal to the greater of 7determined on the issue date7-- 7,a7 the rate earned by the ,government ,securities ,investment ,fund established under section #hdch7;b77#a7 of title #e1 ,united ,states ,code2 or 7,b7 a ,series ,i ,united ,states savings bond4 7#c7 ,bonds to be credited to single account ,each retirement savings bond issued to the designated ,roth ,,ira custodian shall be credited to a single ,roth ,,ira established through the ,r-,bond ,program on behalf of a participant4 7#d7 ,reissue in case of change in custodian ,if a successor designated ,roth ,,ira custodian is designated under subsection 7b77#d71 the retirement savings bonds issued to the predecessor designated ,roth ,,ira custodian shall be reissued to such successor4 7d7 ,roth ,,ira ,for purposes of this section1 the term ,roth ,,ira has the meaning given such term by section #djh;,a7b7 of the ,internal ,revenue ,code of #aihf4 #d4 ,promotion and guidance 7a7 ,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 #aihf and the ,r-,bond ,program established under section #c of this ,act4 7b7 ,guidance ,not later than ,december #ca1 #bjba1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall issue guidance on the implementation and administration of the amendments made by section #b of this ,act4