This bill would amend the tax code to broaden the tax credit for contributions to personal or employer-sponsored retirement savings accounts. The following changes to the so-called “Saver’s Credit” would be made:
The tax credit would be refundable, so taxpayers get the money back if they have no tax liability;
Individual taxpayers (except dependents and full-time students) can receive a credit for 50 percent of their retirement contributions up to $100;
The maximum eligibility threshold for the credit would be increased;
Tax credits would be direct deposited into the taxpayer’s retirement savings account, such as a MyRA or Roth IRA.
The tax credit would only be available to taxpayers under certain income levels, which would be set at $65,000 for those filing joint returns and $32,500 for an individual.
The Dept. of the Treasury would be required to make educational materials about the benefits of tax credits for retirement savings contributions available to taxpayers.