,,ii #aagth ,,congress #ast ,session ,s4 #bdeb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bb1 #bjba,mr4 ,wyden 7for himself1 ,mr4 ,bennet1 ,mr4 ,casey1 ,mr4 ,durbin1 ,ms4 ,klobuchar1 ,mr4 ,menendez1 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 individuals1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,encouraging ,americans to ,save ,act4 #b4 ,saver's matching credit 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 ,saver's matching credit 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 ,except as provided in paragraph 7#b71 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 not eligible ,the term eligible individual shall not include 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 begins4 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 7,c7 the amount of voluntary employee contributions by such individual to any qualified retirement plan 7as defined in section #digd7;c771 and 7,d7 the amount of contributions by such individual to a qualified ,,able program 7as defined in section #ebi;,a7b77 for the benefit of the individual4 ,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 beginning on the day after the last day of such taxable year and ending with 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 7iii7 any distribution to which the rules described in the second sentence of section #ebi;,a7b77#b7 apply1 and 7iv7 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 savings 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 7,b7 in the case of qualified retirement savings contributions described in subsection 7d77#a77;,d71 the qualified ,,able program 7as defined in section #ebi;,a7b77 to which such contributions were made1 or 7,c7 if no such election is made or the ,secretary is not able to make a contribution into such account or plan1 an account established for the benefit of the eligible individual under the ,r-,bond ,program4 ,for purposes of subparagraph 7,c71 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 receiving contributions under this section4 7#b7 ,other retirement vehicles ,an eligible individual may elect1 in such form and manner as the ,secretary may provide1 to have the amount of the credit 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 and 7,c7 accepts contributions made under this section4 ,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 the plan shall have discretion whether to accept contributions made under this section1 but if the plan accepts any such contributions it shall accept them on a uniform basis4 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 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 #daj7;b71 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 #bjbc1 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 #bjbb 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 #fdcc7;a77#b7 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 ,saver's matching credit 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 #bjbb4 7g7 ,coronavirus recovery bonus credit 7#a7 ,in general ,in the case of taxable years beginning after ,december #ca1 #bjbb1 and before ,january #a1 #bjbh1 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 #bjbb4 7#b7 ,phaseout ,the #aj1jjj amount under paragraph 7#a77;,a7 shall be reduced 7but not below zero7 by a percentage which bears the same ratio to #ej percent as-- 7,a7 the excess of-- 7i7 the taxpayer's modified adjusted gross income for the 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 ,definitions ,for purposes of this subsection1 the terms qualified retirement savings contributions1 eligible individual1 applicable dollar amount1 and phaseout range have the meanings given such terms by subsections 7d71 7c71 and 7b71 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 ,january #ca1 #bjbc1 establish a permanent program1 to be known as the ,r-,bond ,program1 which meets the requirements of this section to establish and maintain individual retirement plans on behalf of individuals4 7b7 ,program specifications 7#a7 ,in general 7,a7 ,i,r,as ,the ,r-,bond ,program established under this section shall-- 7i7 permit the establishment of individual retirement plans on behalf of an individual1 whether a traditional ,,ira or a ,roth ,,ira or both1 as appropriate2 7ii7 require the assets of each individual retirement plan established under the program to be held by the designated ,,ira trustee2 7iii7 permit contributions to be made periodically to such individual retirement plans1 including contributions paid under section #fdcc7;a77#b7 of the ,internal ,revenue ,code of #aihf1 contributions made by direct deposit or other electronic means1 including taxpayer-directed direct deposit of ,federal income tax refunds by the ,department of the ,treasury1 and by methods that provide access for the unbanked2 7iv7 permit distributions and rollovers from such individual retirement plans upon request of the account owner2 7v7 include procedures to consolidate multiple accounts established for the same individual in order that each individual1 to the extent practicable1 has only one ,roth ,,ira and only one traditional ,,ira under the program2 and 7vi7 ensure that such individual retirement plans 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 individual retirement plans to be established under the ,r-,bond ,program by taxpayer election on the return of tax1 and in connection with and in support of programs established under ,state and local laws that enroll residents in individual retirement plans4 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 an individual retirement plan under the ,r-,bond ,program1 not to exceed #e4 7,b7 ,limitation of rollover contributions and transfers ,no rollover contribution or transfer shall be accepted to an individual retirement plan under the ,r-,bond ,program except to the extent necessary to consolidate accounts as provided in paragraph 7#a77v74 7#d7 ,designated ,,ira trustee ,for purposes of this section1 the designated ,,ira trustee is the ,department of the ,treasury or such other person as the ,secretary of the ,treasury may designate to act as trustee of the individual retirement plans established under the ,r-,bond ,program4 7#e7 ,disclosures ,the designated ,,ira trustee shall provide in writing1 in paper form mailed to the last known address of the individual unless the individual affirmatively elects to receive electronic statements-- 7,a7 annual account balance statements to individuals on behalf of whom individual retirement plans are established under the ,r-,bond ,program1 which shall include-- 7i7 an explanation that-- 7,i7 program account balances are solely invested in retirement savings bonds issued by the ,department of the ,treasury for the purpose of the ,r-,bond ,program2 7,,ii7 diversified investment opportunities which are not guaranteed by the ,federal government are available for individual retirement plans established by other providers2 7,,iii7 no fees are charged under the ,r-,bond ,program2 and 7,,iv7 the individual has the right to roll over or transfer an account balance without penalty2 7ii7 an illustration of the potential impacts that higher yields may have on long-term accumulation2 and 7iii7 information on the types of fees that other providers may charge for the establishment of individual retirement plans1 and the impact of fees on long-term accumulation2 and 7,b7 if the account balance of the individual retirement plan exceeds #ae1jjj and the individual has not previously so affirmed1 a request that the individual affirm 7including instructions for making such affirmation7 to the designated ,,ira trustee that the individual does not want to roll over such account balance to another plan 7according to the rules relating to rollovers and transfers of individual retirement plans under the ,internal ,revenue ,code of #aihf74 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 ,,ira trustee 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 date of the bond7-- 7,a7 the rate earned by the ,government ,securities ,investment ,fund established under section #hdch7;b77#a7 of title #e1 ,united ,states ,code1 or 7,b7 the rate earned by a ,series ,i ,united ,states savings bond4 7#c7 ,reissue in case of change in trustee ,if a successor designated ,,ira trustee is designated under subsection 7b77#d71 the retirement savings bonds issued to the predecessor designated ,,ira trustee shall be reissued to such successor4 7d7 ,definitions ,for purposes of this section-- 7#a7 ,individual retirement plan ,the term individual retirement plan has the meaning given such term by section #ggja7;a77#cg7 of the ,internal ,revenue ,code of #aihf4 7#b7 ,traditional ,,ira ,the term traditional ,,ira means an individual retirement plan which is not a ,roth ,,ira4 7#c7 ,roth ,,ira ,the term ,roth ,,ira has the meaning given such term by section #djh;,a7b7 of such ,code4 7#d7 ,secretary ,any reference to the ,secretary of the ,treasury includes a reference to such ,secretary's delegate4 #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 ,notice ,not later than #a year after the date of the enactment of this ,act-- 7#a7 ,plan administrators ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 and the ,secretary of ,labor1 as appropriate1 shall issue guidance to plan administrators regarding information 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 ,act for participants and beneficiaries which is to be required to be included in plan disclosures including summary plan descriptions1 open enrollment materials1 and annual notices otherwise provided by plans4 ,such guidance-- 7,a7 shall include model notice language in both ,english and ,spanish that is deemed to satisfy the notice requirement of the preceding sentence1 and 7,b7 in the case of annual enrollment materials for a plan1 shall specify that such notice may be given at the same time as any elective deferral or matching contribution safe harbor notice would be required to be given 7even if the plan does not incorporate such a safe harbor7 and may be incorporated into such safe harbor notice4 7#b7 ,trustees and issuers of ,i,r,as ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 and the ,secretary of ,labor1 as appropriate1 shall issue guidance to trustees and issuers of individual retirement plans regarding information 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 ,act for potentially eligible individuals which is to be required to be included in individual retirement plan disclosures4 7#c7 ,payment of credits ,not later than #c years after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall promulgate guidance setting forth procedures that permit the direct payment of credits under section #fdcc to an employer-sponsored plan in which the taxpayer is a participant and that elects to receive such credits1 including rules regarding notice to taxpayers and a plan of a payment of such credit and notice from a plan to a taxpayer and the ,secretary confirming receipt of a payment4 #e4 ,deadline to fund ,,ira with tax refund 7a7 ,in general ,paragraph 7#c7 of section #bai7;f7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking is made not later than and inserting 8is made-- 7i7 not later than 1 7#b7 by striking the period at the end and inserting 1 or1 and 7#c7 by adding at the end the following new clause3 7ii7 by direct deposit by the ,secretary pursuant to an election on the return for such taxable year to contribute all or a portion of any amount owed to the taxpayer to an individual retirement plan of the taxpayer1 but only if the return is filed not later than the date described in clause 7i74 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjba4