Senate Finance Committee Chair Ron Wyden (D-OR) and six other Democratic Senators have introduced the Encouraging Americans to Save Act (EASA).
The legislation is similar to past proposals introduced by Senator Wyden and other co-sponsors and includes the following.
- The nonrefundable saver’s credit would be replaced with a refundable government matching contribution of up to $1,000 per year for joint filers earning up to $65,000 per year or single filers earning up to $32,500 per year.
- The credit would be claimed on the individual’s tax return and—using information provided by the individual—deposited directly into the individual’s retirement account that accepts Roth IRA or designated Roth assets.
- The credit would be reduced by aggregate distributions received during the taxable year and two preceding years.
- If the individual does not provide account information, the match would be deposited into a Roth R-bond account maintained by the Treasury that is invested in Treasury bonds.
- A coronavirus recovery bonus credit of 50 percent of the first $10,000 in retirement savings made during a five-year period beginning in 2023 would be created.
- Contributions considered for the refundable credit would include contributions made to Achieving a Better Life Experience (ABLE) accounts and would be deposited into those accounts.
The bill has been referred to the Senate Committee on Finance.