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Wyden and Senate Democrats Introduce Bill to Help Working Families Save for Retirement
WASHINGTON – Senate Finance Committee Ranking Member Ron Wyden, D-Ore. along with Senate Democrats, today introduced legislation designed to help more working families and middle class Americans save for retirement.
The country is facing a serious retirement crisis with millions of American workers with no pension and nothing saved at all. Additionally, according to the Joint Committee on Taxation, over the next five years taxpayers will contribute over $1 trillion into subsidies for retirement accounts yet few middle class Americans will benefit from this aid.
“Not only are most Americans not prepared for retirement, but current tax incentives for retirement are skewed towards those who need help the least,” said Wyden. “It’s a double whammy that’s fueling the country’s retirement crisis. This legislation aims to level the playing field and create an opportunity to help families in Oregon and nationwide save.”
The bill, the “Encouraging Americans to Save Act,” will enhance the saver’s credit, a non-refundable tax credit for eligible taxpayers who make contributions to IRAs or employer-sponsored retirement plans, by making it refundable so those without a tax liability also benefit. Additionally the bill would require that the credit amount be contributed directly to a tax-favored retirement plan.
Co-sponsors include Sens. Cantwell, Cardin, Brown and Casey.
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