07/22/2021 | Press release | Distributed by Public on 07/22/2021 13:00
Ashley Schapitl (202) 224-4515
WASHINGTON -Senate Finance Committee Ranking Member Ron Wyden, D-Ore., and six Democratic colleagues today introduced legislation to help working and middle-class families save for retirement.
The Encouraging Americans to Save Act is cosponsored by Senators Michael F. Bennet, D-Colo., Bob Casey, D-Pa., Dick Durbin, D-Ill., Amy Klobuchar, D-Minn., Bob Menendez, D-N.J., and Patty Murray, D-Wash.
According to the National Institute on Retirement Security, more than 100 million working-age Americans do not have coverage through a pension plan or own any retirement assets, whether in a 401(k) type plan or an IRA.
Wyden's bill, the Encouraging Americans to Save Act, enhances incentives to save by restructuring the existing, nonrefundable saver's credit into a refundable, government matching contribution of up to $1,000 a year for middle and moderate income workers who save through 401(k) type plans or IRAs. The legislation also includes a COVID-19 recovery bonus credit that provides up to $5,000 in additional government matching contributions for the first $10,000 saved during a five-year period beginning in 2022.
'Low- and middle-income workers, who are far less likely to have adequate retirement savings, need help,' Wyden said. 'Democrats delivered critical relief to workers and families struggling to make ends meet during the pandemic, and now these folks need help in getting back on their feet and securing their financial future. Addressing our retirement crisis demands a comprehensive approach, and my bill is an important piece of the puzzle that would deliver meaningful federal retirement contributions year after year.'
Wyden's legislation would also enhance the saver's credit by making the full 50% credit rate available to couples earning up to $65,000 per year ($32,500 for single taxpayers) and would require the credit be directly contributed into the saver's retirement plan or IRA.
Text of the bill is available here.
A summary of the bill is available here.