No official summary available for this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5887 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5887
To establish a universal personal savings program, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 31, 2025
Mr. Peters (for himself and Mrs. Torres of California) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Education and Workforce, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To establish a universal personal savings program, and for other
purposes.
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 ``Saving for the Future Act''.
SEC. 2. FINDINGS.
Congress finds as follows:
(1) 3 out of 10 private-sector workers lack access to any
workplace retirement plan, according to a Bureau of Labor
Statistics report from a 2023 report.
(2) A retirement study conducted by the Government
Accountability Office found that 48 percent of households age
55 and older have no retirement savings in a defined
contribution plan or individual retirement account, and nearly
30 percent of households age 55 and older have no retirement
savings and no defined benefit plan.
(3) A 2022 report on the economic well-being of United
States households conducted by the Federal Reserve found that
28 percent of non-retirees reportedly did not have any
retirement savings, and that 60 percent of non-retirees with
self-directed retirement accounts expressed low levels of
confidence in their ability to make the right investment
decisions when investing in such accounts.
SEC. 3. UNIVERSAL PERSONAL SAVINGS.
(a) In General.--Subtitle B of title I of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1021 et seq.) is amended by
adding at the end the following:
``PART 8--UNIVERSAL PERSONAL SAVINGS
``SEC. 801. DEFINITIONS.
``For purposes of this part:
``(1) Applicable employer.--The term `applicable employer'
means an employer--
``(A) with at least 10 full-time equivalent
employees; and
``(B) that has employed at least 10 full-time
equivalent employees for not less than 2 years.
``(2) Board.--The term `Board' means the Federal Universal
Personal Savings Investment Board established under section
803.
``(3) Employee.--The term `employee', unless specified
otherwise, includes full-time and part-time employees of an
applicable employer.
``(4) Executive director.--The term `Executive Director'
means the Executive Director of the UP Account Board appointed
under section 803.
``(5) Full time.--The term `full time', with respect to
employment, means 40 hours per week.
``(6) Full-time equivalent employee.--The term `full-time
equivalent employee' means the sum of--
``(A) the number of employees working full time;
and
``(B) the full-time equivalent of the number of
employees working part-time, as defined and calculated
in the manner determined most appropriate by the
Secretary.
``SEC. 802. EMPLOYER CONTRIBUTION REQUIREMENTS.
``(a) Minimum Employer Contribution.--
``(1) In general.--Beginning in the first full taxable year
following the date of enactment of the Saving for the Future
Act, each applicable employer shall contribute to a qualifying
plan, on behalf of each employee that is not enrolled in an
active, defined benefit pension plan sponsored by such
employer, the applicable minimum amount described in paragraph
(2).
``(2) Minimum employer contribution.--
``(A) Initial amounts.--For the first year in which
the requirements of paragraph (1) apply, and the 1 year
immediately following such first year, the minimum
amount an applicable employer is required to contribute
for each full-time employee is $0.50 per hour worked by
the employee.
``(B) Third and fourth years.--For the 2 years
immediately following the period during which
subparagraph (A) applies, the minimum amount an
applicable employer is required to contribute for each
full-time employee is $.60 per hour worked by the
employee.
``(C) Subsequent years.--The Secretary shall
increase the amounts described in subparagraph (B) for
the year immediately following the period during which
subparagraph (B) applies, and every 3 years thereafter,
by an amount proportional to growth in average
nonsupervisory wages.
``(3) Noncompliance.--In the case of an applicable employer
that is found to be in violation of the requirement under
paragraph (1), such employer shall be required to make the
contributions required under paragraph (1), plus interest, at
an interest rate set by the Secretary through rulemaking.
``(b) Qualifying Plans.--
``(1) In general.--Each applicable employer shall provide a
pension plan for all employees.
``(2) Types of plans.--The pension plan required under
paragraph (1)--
``(A)(i) in the case of an applicable employer with
100 or more full-time equivalent employees, shall be an
employer plan, which may be a plan described in section
401(k) of the Internal Revenue Code of 1986, defined
benefit pension plan, or any other plan described in
section 219(g)(5) of the Internal Revenue Code of 1986;
and
``(ii) in the case of an applicable employer with
fewer than 100 full-time equivalent employees, shall be
a plan described in subparagraph (A), a simple
retirement account under section 408(p) of the Internal
Revenue Code of 1986 or an automatic payroll deduction
individual retirement account or multiple employer
plan, including any current or prospective State-
established and-facilitated payroll deduction or
automatic individual retirement account, or an UP
Account described in section 804; or
``(B) in the case of an applicable employer who
does not provide an employer contribution but offers a
State-established or-facilitated program described in
subparagraph (A)(ii), such employer shall provide an UP
Retirement Account to which the employer makes
contributions, and any employee contributions shall be
directed to the State plan.
``(3) Clarification of employer obligations with respect to
certain employees.--In the case of an applicable employer that
offers a UP Retirement Account plan and any other type of plan
described in subparagraph (A)(i), (A)(ii), or (B), as
applicable, of paragraph (2), to employees, with respect to
employees for whom the employer is not required under this Act
to offer participation in such other type of plan, the
requirements of this part may be met by allowing such employees
to participate in such other plan.
``(c) Standard Notice.--The board shall develop a standard notice
that employers with fewer than 10 workers electing not to make
contributions are required to provide to each employee upon hire, and
annually thereafter. Such notice shall provide instructions on how to
set up an account, make contributions, and claim the individual credit
under section 25BB of the Internal Revenue Code of 1986.
``SEC. 803. UP ACCOUNT BOARD.
``(a) Establishment of Board.--There is established a Federal
Universal Personal Savings Investment Board, an independent government
agency for the purpose of overseeing UP Accounts.
``(b) Membership.--
``(1) Appointment of members.--The President shall appoint,
by and with the consent of the Senate, 5 members to serve on
the Board. Such members shall have substantial experience,
training, and expertise in the management of financial
investments and pension benefit plans.
``(2) Executive director.--The Board shall hire an
Executive Director of the Board.
``(3) Terms.--Each member shall serve a term of 5 years,
except that, of the members first appointed, one shall serve a
term of 1 year, one shall serve a term of 2 years, one shall
serve a term of 3 years, one shall serve a term of 4 years, and
one shall serve a term of 5 years. Each member of the Board may
serve up to 2 consecutive terms.
``(c) Funding.--Administrative expenses incurred to carry out this
part shall be paid first out net earnings in the UP Account Fund.
``SEC. 804. UP ACCOUNT FUND.
``(a) In General.--There is established in the Treasury of the
United States a UP Account Fund.
``(b) Funds.--The UP Account Fund shall consist of all amounts
contributed by participants, and employees on behalf of participants,
into UP Retirement Accounts and UP Savings Accounts, increased by the
total net earnings from investments of sums in the UP Account Fund or
reduced by the total net losses from investments of the UP Account
Fund, and reduced by the total amount of payments made from the UP
Account Fund (including payments for administrative expenses).
``(c) Permissible Uses of Funds.--The sums in the UP Account Fund
are appropriated and shall remain available without fiscal year
limitation--
``(1) to invest in accordance with section 805(h);
``(2) to pay benefits or purchase annuity contracts under
this subchapter; and
``(3) to pay administrative expenses.
``SEC. 805. UP RETIREMENT ACCOUNTS.
``(a) In General.--The Board shall establish UP Retirement Accounts
that are portable, defined contribution pension plans.
``(b) Rollovers.--
``(1) Definitions.--For purposes of this subsection--
``(A) the term `eligible rollover distribution' has
the meaning given such term by section 402(c)(4) of the
Internal Revenue Code of 1986; and
``(B) the term `qualified trust' has the meaning
given such term by section 402(c)(8) of the Internal
Revenue Code of 1986.
``(2) Rollovers.--A participant may contribute to the UP
Retirement Account an eligible rollover that a qualified trust
could accept under the Internal Revenue Code of 1986. A
contribution made under this subsection shall be made in the
form described in section 401(a)(31) of the Internal Revenue
Code of 1986. In the case of an eligible rollover distribution,
the maximum amount transferred to the UP Account Fund shall not
exceed the amount which would otherwise have been included in
the participant's gross income for Federal income tax purposes.
``(3) Regulations.--The Executive Director shall prescribe
regulations to carry out this subsection.
``(c) Administration.--The Board shall contract with one or more
private investment firms to administer the UP Accounts. The Board shall
contract with multiple private investment firms, as necessary to ensure
that no single firm administers more than $500,000,000,000 in UP
Account assets.
``(d) Individual Eligibility.--
``(1) In general.--An employee is eligible to participate
in a UP Retirement Account if--
``(A) the employee's employer establishes a UP
Retirement Account on the employee's behalf; or
``(B) the employee demonstrates to the Board that
the employee works for a employer that is not an
applicable employer.
``(2) Maintenance of account.--An individual who becomes a
participant in a UP Retirement Account as described in
paragraph (1) may maintain such account and may continue to
make individual contributions to such account, regardless of
such individual's subsequent employment status, provided that
the individual is not a participant in another plan described
in section 802(b)(2).
``(e) Quarterly Statements.--The Board shall provide participants
with a quarterly statement explaining each participant's projected
income in retirement under different distribution scenarios and
identifying the total dollar amount paid in fees for the year.
``(f) Employee and Employer Contributions.--
``(1) Employee contributions.--
``(A) In general.--Applicable employers making
contributions required under section 802 to a UP
Retirement Account shall auto-enroll all employees in
such an account with an employee contribution that is
equal to 4 percent of the employee's wages, with the
option for any such employee to elect a different
employee contribution level or to opt out of such
account at any time.
``(B) Auto-escalation.--Employees making
contributions to a UP Retirement Account shall have
their contributions automatically escalated by half a
percentage point at the conclusion of each full year
during which such employer is so enrolled, until
reaching the level of a 10 percent employee
contribution. Any employee may opt out of such
automatic escalation.
``(C) Default elections in the case of changes in
employment.--In the case of an employee who was
enrolled in a UP Retirement Account through one
employer and subsequently ceases to work for such
employer, if the employee subsequently is employed by
another applicable employer, the employee's default
contribution level under this paragraph shall be the
same level that it was on the last day of employment
with the previous employer.
``(2) Employer contributions.--
``(A) In general.--Applicable employers may
contribute more to an employee's UP Retirement Account
than is required under section 802, but may not
contribute more than \1/2\ the amount in effect under
section 402(g)(1)(B) of the Internal Revenue Code of
1986 for the taxable year.
``(B) Default rules.--Any employer matching
requirements under this part shall apply to any
employer contributions that are in addition to the
minimum employer contribution.
``(C) Fiduciary duties.--An applicable employer's
fiduciary duties with respect to an employee's UP
Retirement Account extend only to the full and timely
payment of contributions to their employees' UP
Retirement Accounts. For all other purposes, the
members of the Board are the fiduciaries of such
accounts.
``(g) Participant Accounts.--
``(1) In general.--The Executive Director shall establish
and maintain an account for each individual who makes
contributions or for whom contributions are made under this
section.
``(2) Balances.--The balance in a participant's account at
any time is the excess of--
``(A) the sum of--
``(i) all contributions made to the UP
Retirement Account by the participant;
``(ii) all contributions made to such
Account for the benefit of the participant; and
``(iii) the total amount of the allocations
made to and reductions made in the account
pursuant to paragraph (3), over
``(B) the amounts paid out of the UP Retirement
Account with respect to such participant.
``(3) Adjustments.--Pursuant to regulations prescribed by
the Executive Director, the Executive Director shall allocate
to each account an amount equal to a pro rata share of the net
earnings and net losses from each investment of sums in the UP
Account Fund attributable to sums credited to such account,
reduced by an appropriate share of the administrative expenses
paid out of the net earnings, as determined by the Executive
Director.
``(h) Investments.--The following investment rules shall apply with
respect to a UP Retirement Account:
``(1) The Board shall make available a reasonable menu of
investment products, including low-fee index funds, sufficient
to provide participants with the opportunity to diversify their
UP Retirement Accounts in order to minimize the risk of large
losses.
``(2) The default investment option for participants shall
minimize fees, be diversified, and automatically reduce risk to
the participant as the participant approaches retirement age.
``(3) UP Retirement Accounts shall allow participants to
change or customize investment allocation.
``(4) The board shall select investments solely in the
interests of participants and beneficiaries and for the
exclusive purpose of providing benefits and deferring
reasonable expenses with the prevailing care, skill, prudence,
and diligence that a prudent individual acting in a like
capacity and familiar with such matters would use.
``(i) Distributions.--
``(1) In general.--The Board shall ensure that investors
are offered forms of distribution that include--
``(A) monthly income for life for the participant
or surviving spouse, if applicable;
``(B) monthly income until the normal or maximum
Social Security retirement age for the participant or
surviving spouse, if applicable; and
``(C) automatic, regular withdrawals, under which a
set percentage of initial capital is withdrawn each
year, on a monthly basis.
``(2) Death of participant.--In case of death of a
participant, a lump sum shall be paid to designated
beneficiary.
``SEC. 806. UP SAVINGS ACCOUNTS.
``(a) In General.--In addition to a standard UP Retirement Account
under section 805, a participant may maintain a UP Savings Account,
established by the Board, and designed as safe, short-to medium-term
savings vehicles.
``(b) Contributions; Maximum Balance.--
``(1) In general.--Participants may make contributions to
their UP Savings Account until the account reaches the maximum
balance amount described in paragraph (1). Any contributions a
participant wishes to make after the participant's account
reaches such maximum balance amount shall be credited to the
participant's UP Retirement Account established under section
805. A UP Savings Account may grow past the maximum balance
amount due to accumulation without penalty.
``(2) Increased amounts.--The Board shall establish the
maximum balance amount for purposes of paragraph (1) as
follows:
``(A) For the first fiscal year that begins after
the date of enactment of the Saving for the Future Act,
the maximum balance amount shall be $2,500.
``(B) For fiscal year immediately following the
fiscal year described in subparagraph (A), and each
fiscal year thereafter, the Board shall increase the
maximum balance amount from the previous year, in
increments of $100 that most closely reflects the
average wage growth during the applicable 12-month
period.
``(3) Default rule.--Any contributions a participant makes
pursuant to accounts established under this part shall be
credited to the participant's UP Savings Account, until such
has reached the maximum balance amount, unless the participant
specifies otherwise. Once the maximum balance is reached,
additional contributions will go to a participant's UP
Retirement Account.
``(c) Investment.--The Board may invest contributions to UP Savings
Accounts only in cash, money market funds, certificates of deposit, or
government bonds.
``(d) Withdrawals.--Participants may withdraw amounts from their UP
Savings Account when experiencing a specific financial situation that
requires a non-routine use of money, as determined by the Board (in
rules similar to the rules governing hardship distributions from a
trust described in section 401(a) of the Internal Revenue Code of 1986
which is exempt from taxation under section 501(a) of such Code). Such
situations may include a major reduction in earnings, an on-the-job
injury, disability, family or medical leave, a large medical bill, the
down payment for a home, and the beginning of a training or educational
experience. The Board shall determine the rules regarding such
withdrawals, including allowable needs, and demonstration of the need,
but shall not impose a withdrawal penalty or impose a repayment
requirement. Loans to investors shall not be permitted.
``(e) Other Pension Plans.--Any pension plan may offer a safe,
short-to medium-term savings account with terms similar to the terms
that apply to UP Savings Accounts described in this section. For
purposes of this Act, any such account shall be considered part of the
pension plan.
``SEC. 807. TAX TREATMENT OF UP ACCOUNTS.
``(a) In General.--For purposes of the Internal Revenue Code of
1986--
``(1) the UP Account Fund shall be treated as a trust
described in section 401(a) of such Code which is exempt from
taxation under section 501(a) of such Code;
``(2) any contribution to, or distribution from, the UP
Account Fund shall be treated in the same manner as
contributions to or distributions from such a trust; and
``(3) subject to section 401(k)(4)(B) of such Code and any
dollar limitation on the application of section 402(a)(8) of
such Code, contributions to the UP Account Fund shall not be
treated as distributed or made available to an employee or
Member nor as a contribution made to the Fund by an employee or
Member merely because the employee or Member has, under the
provisions of this part, an election whether the contribution
will be made to the UP Account Fund or received by the employee
or Member in cash.
``(b) Nondiscrimination Requirements.--Notwithstanding any other
provision of law, the UP Account Fund is not subject to the
nondiscrimination requirements applicable to arrangements described in
section 401(k) of the Internal Revenue Code of 1986, or to matching
contributions (as described in section 401(m) of such Code), so long as
it meets the requirements of this section.
``(c) Rule of Construction.--Subsection (a) shall not be construed
to provide that any amount of the employee's or Member's basic pay
which is contributed to the UP Account Fund shall not be included in
the term `wages' for the purposes of section 209 of the Social Security
Act or section 3121(a) of the Internal Revenue Code of 1986.
``SEC. 808. QUALIFIED ROTH CONTRIBUTION PROGRAM.
``(a) Definitions.--For purposes of this section--
``(1) the term `qualified Roth contribution program' means
a program described in paragraph (1) of section 402A(b) of the
Internal Revenue Code of 1986 which meets the requirements of
paragraph (2) of such section; and
``(2) the terms `designated Roth contribution' and
`elective deferral' have the meanings given such terms in
section 402A of the Internal Revenue Code of 1986.
``(b) Authority To Establish.--The Executive Director shall by
regulation provide for the inclusion in the UP Accounts of a qualified
Roth contribution program, under such terms and conditions as the Board
may prescribe.
``(c) Required Provisions.--The regulations under subsection (b)
shall include--
``(1) provisions under which an election to make designated
Roth contributions may be made by any individual who is
eligible to make contributions to a UP Account under section
805(d); and
``(2) any other provisions which may be necessary to carry
out this section.
``SEC. 809. SURVIVOR ANNUITIES.
``The rules on survivor annuities under subchapter IV of chapter 84
of title 5, United States Code, that are applicable to the Thrift
Savings Plan, shall apply to UP Accounts. The Executive Director shall
promulgate regulations to provide for the application of such rules to
UP Accounts, as appropriate.''.
(b) Clerical Amendment.--The table of contents in section 1 of the
Employee Retirement Income Security Act of 1974 is amended by inserting
after the item relating to section 734 the following new items:
``Part 8--Universal Personal Savings
``Sec. 801. Definitions.
``Sec. 802. Employer contribution requirements.
``Sec. 803. UP Account Board.
``Sec. 804. UP Account Fund.
``Sec. 805. UP Retirement Accounts.
``Sec. 806. UP Savings Accounts.
``Sec. 807. Tax treatment of UP Accounts.
``Sec. 808. Qualified Roth contribution program.
``Sec. 809. Survivor annuities.''.
SEC. 4. INCREASE IN CREDIT FOR SMALL EMPLOYER PENSION PLAN STARTUP
COSTS.
(a) In General.--Paragraph (1) of section 45E(b) of the Internal
Revenue Code of 1986 is amended by striking ``$500'' and inserting
``$2,000''.
(b) Eligible Employers.--Paragraph (1) of section 45E(c) of the
Internal Revenue Code of 1986 is amended by inserting ``, applied by
substituting `250' for `100''' after ``408(p)(2)(C)(i)''.
(c) Penalty for Noncompliant Employers.--Subsection (c) of section
45E of the Internal Revenue Code of 1986 is amended by adding at the
end the following new paragraph:
``(3) Employers failing to make required contributions.--
Such term shall not include an employer subject to the
requirement of section 802(a)(1) of the Employee Retirement
Income Security Act of 1974 that fails, within the time
prescribed by the Secretary, to make any required contribution
under such section 802 for the taxable year or any of the 4
taxable years preceding such year.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 5. CREDIT FOR MINIMUM EMPLOYER CONTRIBUTIONS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45BB. CREDIT FOR MINIMUM EMPLOYER CONTRIBUTIONS.
``(a) General Rule.--For purposes of section 38, the minimum
employer contribution credit determined under this section for any
taxable year is an amount equal to the applicable percentage of the
qualified retirement contributions paid or incurred by the taxpayer
during the taxable year.
``(b) Applicable Percentage.--For purposes of subsection (a), the
applicable percentage is--
``(1) 50 percent, in the case of contributions made with
respect to not more than 15 employees of the employer (or the
number of employees of the employer which is the equivalent of
15 full-time employees), and
``(2) 25 percent, in the case of contributions made with
respect to so many of the employees of the employer (or the
equivalent of so many full-time employees) as exceeds 15 but
does not exceed 30.
``(c) Qualified Retirement Contributions.--For purposes of this
section--
``(1) In general.--The term `qualified retirement
contributions' means--
``(A) contributions made by an employer as required
under section 802 of the Employee Retirement Income
Security Act of 1974, and
``(B) contributions to a plan described in section
802(b)(2) of such Act made by an employer which is not
subject to the requirement of section 802(a)(1) of such
Act.
``(2) Only required contribution amount taken into
account.--The term `qualified retirement contributions' does
not include any amount in excess of--
``(A) the amount determined under section 802(a)(2)
of the Employee Retirement Income Security Act with
respect to each employee of the employer, or
``(B) the amount which would be so determined if
the employer were subject to the requirement of section
802(a)(1) of such Act.
``(d) Employers Excluded for Failure To Make Contributions.--
Subsection (a) shall not apply to any employer which fails, within the
time prescribed by the Secretary, to make any contribution required to
be made by such employer under section 802 of the Employee Retirement
Income Security Act of 1974 for the taxable year or any of the 4
taxable years preceding such year.
``(e) Special Rules.--For purposes of this section--
``(1) Aggregation rules, etc.--Rules similar to the rules
of section 45E(e) shall apply.
``(2) Denial of double benefit.--No credit shall be allowed
under this section for any taxable year in which the credit
under section 45E is allowed with respect to the taxpayer.
``(f) Credit Made Available to Tax-Exempt Eligible Employers.--
``(1) In general.--In the case of a tax-exempt eligible
employer, there shall be treated as a credit allowable under
subpart C (and not allowable under this subpart) the lesser
of--
``(A) the amount of the credit determined under
this section with respect to such employer, or
``(B) the amount of the payroll taxes of the
employer during the calendar year in which the taxable
year begins.
``(2) Tax-exempt eligible employer.--For purposes of this
section, the term `tax-exempt eligible employer' means an
eligible employer which is any organization described in
section 501(c) which is exempt from taxation under section
501(a).
``(3) Payroll taxes.--For purposes of this subsection--
``(A) In general.--The term `payroll taxes' means--
``(i) amounts required to be withheld from
the employees of the tax-exempt eligible
employer under section 3401(a),
``(ii) amounts required to be withheld from
such employees under section 3101(b), and
``(iii) amounts of the taxes imposed on the
tax-exempt eligible employer under section
3111(b).
``(B) Special rule.--A rule similar to the rule of
section 24(d)(2)(C) shall apply for purposes of
subparagraph (A).''.
(b) Credit To Be Made Part of Business Credit.--Subsection (b) of
section 38 of the Internal Revenue Code of 1986 is amended by striking
``plus'' at the end of paragraph (40), by striking the period at the
end of paragraph (41) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(42) in the case of an eligible employer, the minimum
employer contribution credit determined under section
45BB(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 45BB. Credit for minimum employer contributions.''.
(d) Transfers to Federal Old-Age and Survivors Insurance Trust
Fund.--There are hereby appropriated to the Federal Old-Age and
Survivors Trust Fund and the Federal Disability Insurance Trust Fund
established under section 201 of the Social Security Act (42 U.S.C.
401) amounts equal to the reduction in revenues to the Treasury by
reason of the enactment of section 45AA(f) of the Internal Revenue Code
of 1986. Amounts appropriated by the preceding sentence shall be
transferred from the general fund at such times and in such manner as
to replicate to the extent possible the transfers which would have
occurred to such Trust Fund had such amendments not been enacted.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 6. ADDITIONAL CREDIT FOR INDIVIDUALS MAKING RETIREMENT
CONTRIBUTIONS.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 25B the following new section:
``SEC. 25BB. ADDITIONAL CREDIT FOR CERTAIN INDIVIDUALS MAKING
RETIREMENT CONTRIBUTIONS.
``(a) Allowance of Credit.--In the case of an eligible individual,
there shall be allowed as a credit against the tax imposed by this
subtitle for the taxable year an amount equal to 50 percent of so much
of the qualified retirement contributions of the individual for the
taxable year as do not exceed the base amount.
``(b) Eligible Individual.--For purposes of this section, the term
`eligible individual' means an individual whose employer does not
provide a defined benefit plan (as defined in section 414(j)), defined
contribution plan (as defined in section 414(i)), or participation in a
UP Account under section 805 of the Employee Retirement Income Security
Act of 1974, or who is not employed, at the time the qualified
retirement contributions are made.
``(c) Qualified Retirement Contributions, Etc.--For purposes of
this section--
``(1) In general.--The term `qualified retirement
contributions' means, with respect to any taxable year, any
amounts paid in cash by an individual to--
``(A) an individual retirement plan, or
``(B) a UP Account established under section 805 of
the Employee Retirement Income Security Act of 1974,
for the benefit of the individual.
``(2) Base amount.--The base amount for any taxable year is
an amount equal to the amount in effect under section
802(a)(3)(i) of the Employee Retirement Income Security Act of
1974 for such year.
``(d) Special Rules.--
``(1) Investment in the contract.--Rules similar to the
rules of section 25B(f) shall apply for purposes of this
section.
``(2) Coordination with saver's credit.--The credit under
this section and the credit under section 25B shall each be
determined without regard to the other.''.
(b) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 25B the
following new item:
``Sec. 25BB. Additional credit for certain individuals making
retirement contributions.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 7. INCREASE IN HIGHEST INDIVIDUAL INCOME TAX RATE.
(a) In General.--Each of the tables contained in subparagraphs (A),
(B), (C), (D), and (E) of section 1(j)(2) of the Internal Revenue Code
of 1986 is amended by striking ``37%'' in the last line and inserting
``39.6%''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 8. INCREASE IN CORPORATE INCOME TAX RATE.
(a) In General.--Subsection (b) of section 11 of the Internal
Revenue Code of 1986 is amended by striking ``21 percent'' and
inserting ``23 percent''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2024.
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Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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