Expanded Student Saver's Tax Credit Act
This bill allows full-time students to qualify for the federal Retirement Savings Contribution Tax Credit (commonly known as the Saver’s Credit) through 2026 and the federal Saver’s Match beginning in 2027.
As background, an eligible individual may claim the nonrefundable Saver’s Credit for a percentage of contributions made to a qualified retirement account (e.g., individual retirement account or employer-sponsored retirement account). The maximum Saver’s Credit amount allowed is $1,000 (or $2,000 for married joint filers).
Under current law, the Saver’s Credit will be replaced by the Saver’s Match in 2027. Under the Saver's Match, a matching contribution of up to $1,000 (or $2,000 for married joint filers) may be deposited into an individual’s qualified retirement account.
Full-time students are currently not eligible for the Saver’s Credit or Saver’s Match. Under the bill, the definition of an eligible individual for purposes of the Saver’s Credit and the Saver’s Match is modified to include full-time students.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2852 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2852
To amend the Internal Revenue Code of 1986 to allow students to take
the saver's credit and receive the saver's match.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 10, 2025
Ms. Johnson of Texas (for herself, Mr. Johnson of Georgia, and Ms.
Norton) 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 allow students to take
the saver's credit and receive the saver's match.
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 ``Expanded Student Saver's Tax Credit
Act''.
SEC. 2. SAVER'S CREDIT AND SAVER'S MATCH ALLOWED TO INDIVIDUALS WHO ARE
FULL-TIME STUDENTS.
(a) Saver's Credit.--Section 25B(c)(2) of the Internal Revenue Code
of 1986 is amended--
(1) in the heading, by striking ``and full time students'',
and
(2) by striking ``include--'' and all that follows through
the period and inserting ``include any individual with respect
to whom a deduction under section 151 is allowed to another
taxpayer for a taxable year beginning in the calendar year in
which such individual's taxable year begins.''.
(b) Saver's Match.--Section 6433(c)(2) of such Code is amended--
(1) in the heading, by striking ``and full time students'',
and
(2) by striking ``include--'' and all that follows through
the period and inserting ``include any individual with respect
to whom a deduction under section 151 is allowed to another
taxpayer for a taxable year beginning in the calendar year in
which such individual's taxable year begins.''.
(c) Effective Date.--
(1) Saver's credit.--The amendments made by subsection (a)
shall apply to contributions made after the date of the
enactment of this Act.
(2) Saver's match.--The amendments made by subsection (b)
shall take effect as if included in section 103 of the SECURE
2.0 Act of 2022.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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