Retirement Savings for Working Americans Act - Amends Internal Revenue Code provisions relating to the tax credit for retirement savings contributions (saver's credit) to: (1) require the Secretary of the Treasury to deposit saver's credit amounts directly into the designated retirement account of the taxpayer; (2) expand income eligibility levels for the saver's credit; (3) allow taxpayers that contribute to a qualified tuition program or a Coverdell education savings account to claim such contributions as retirement savings contributions; and (4) adjust the saver's credit maximum contribution amount for inflation beginning after 2007.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2724 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 2724
To amend the Internal Revenue Code of 1986 to modify the saver's
credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 14, 2007
Mr. Emanuel (for himself and Mr. Ramstad) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify the saver's
credit.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Retirement Savings for Working
Americans Act''.
SEC. 2. MODIFICATION OF SAVER'S CREDIT.
(a) Full Credit Amount Made as Payment Into Retirement Accounts.--
The Internal Revenue Code of 1986 is amended--
(1) by redesignating section 25B as section 30D, and by
moving section 30D (as so redesignated) from subpart A of part
IV of subchapter A of chapter 1 (relating to nonrefundable
personal credits) to immediately after section 30C in subpart B
of such part (relating to other credits), and
(2) by amending subsection (g) of section 30D (as so
redesignated) to read as follows:
``(g) Credit Payable Only Into Retirement Account.--
``(1) In general.--The Secretary of the Treasury shall pay
into the designated retirement account of the taxpayer an
amount equal to the credit determined under subsection (a) for
the taxable year.
``(2) Designated retirement account.--For purposes of this
subsection, the term `designated retirement account' means any
account or plan--
``(A) with respect to which qualified retirement
savings contributions of the taxpayer are taken into
account under subsection (a) for the taxable year,
``(B) which is designated by the taxpayer (in such
form and manner as the Secretary may provide) on the
return of tax for the taxable year, and
``(C) which, under the terms of the account or
plan, accepts the payment described in paragraph (1).
``(3) No double benefit.--The credit determined under
subsection (a) shall not be allowed as a credit against any tax
imposed by this title.''.
(b) Expansion of Phaseout Ranges.--Subsection (b) of section 30D of
such Code, as redesignated by this section, is amended to read as
follows:
``(b) Applicable Percentage.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the
applicable percentage is 50 percent.
``(2) Phaseout.--With respect to any taxpayer for any
taxable year, the applicable percentage shall be reduced (but
not below zero) by the percentage which bears the same ratio to
50 percent as--
``(A) the excess of--
``(i) the taxpayer's adjusted gross income
for such taxable year, over
``(ii) the applicable dollar amount, bears
to
``(B) the phaseout range.
If any reduction under this paragraph is not a multiple of 1
percent, such reduction shall be rounded to the nearest
multiple of 1 percent.
``(3) Applicable dollar amount; phaseout range.--The
applicable dollar amount and the phaseout range shall be
determined in accordance with the following table:
The phaseout
In the case of: The applicable dollar amount is: range is:
A joint return.................................. $60,000 $10,000
A head of a household........................... $45,000 $7,500
Any other case.................................. $30,000 $5,000''.
(c) Tax-Preferred Education Savings Treated as Retirement
Savings.--Subsection (d) of section 30D of such Code, as redesignated
by this section, is amended by adding at the end the following new
paragraph:
``(3) Education savings account contributions treated as
retirement savings.--Amounts contributed to qualified tuition
programs under section 529 and amounts contributed to Coverdell
education savings accounts under section 530 shall be treated
as qualified retirement savings contributions (subject to any
reduction under paragraph (2)).''.
(d) Limitation on Retirement Contributions Taken Into Account
Indexed for Inflation.--Section 30D of such Code, as redesignated by
this section, is amended by adding at the end the following new
subsection:
``(h) Inflation Adjustment.--In the case of any taxable year
beginning in a calendar year after 2007, the dollar amounts in
subsection (a) shall be increased by an amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable year
begins, determined by substituting `2006' for `1992' in
subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be rounded
to the nearest multiple of $100.''.
(e) Conforming Amendments.--
(1) Section 24(b)(3)(B) of such Code is amended by striking
``and 25B''.
(2) Section 25(e)(1)(C) of such Code is amended by striking
``25B,''.
(3) Sections 26(a)(1), 904(i), and 1400C(d) of such Code
are each amended by striking ``24, and 25B'' and inserting
``and 24''.
(4) The heading of section 30D of such Code, as
redesignated by this section, is amended to read as follows:
``SEC. 30D. SAVER'S CREDIT.''.
(5) Section 30D(a) of such Code, as so redesignated, is
amended by striking ``there shall be allowed as a credit
against the tax imposed by this subtitle for the taxable year''
and inserting ``the credit determined under this subsection for
the taxable year is''.
(6) The table of sections for subpart A of part IV of
subchapter A of chapter 1 of such Code is amended by striking
the item relating to section 25B.
(7) The table of sections for subpart B of such part is
amended by adding at the end the following new item:
``Sec. 30D. Saver's credit.''.
(8) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``or 30D'' after ``section 35''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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