According to a Pomeroy press release, The Savings for American Families’ Future Act would change the current Saver’s Credit, created by Congress in 2002, to make it refundable and require that the credit be paid only into the taxpayer’s retirement accounts. The bill would also expand the number of families and individuals who would be able to use the full Saver’s Credit by more than doubling the existing income limits for the full credit.
The new limits would be set at adjusted gross incomes (AGI) of $32,500 for individuals and $65,000 for couples. A phase-out range gradually lowers the credit until AGI reaches $42,500 for individuals and $85,000 for couples, at which time taxpayers are no longer eligible, the announcement said. The bill would establish the maximum amount of an employee’s contribution that is eligible for the Saver’s Credit at $500 for an individual and $1,000 for a couple, with the limits to increase by $100 and $200, respectively, each year until 2020, and after that time, to increase with inflation.
“In the current economic climate, many employers are no longer able to match their employees’ retirement savings contributions, leaving already stretched employees to make up the difference. The Savings for American Families’ Future Act will update the Saver’s Credit to help workers continue to put aside money for their retirement years,” Pomeroy said in the announcement.