I 

110TH CONGRESS 

1ST SESSION H. R. 2724 

To amend the Internal Revenue Code of 1986 to modify the saver’s credit. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 14, 2007 

Mr. EMANUEL (for himself and Mr. RAMSTAD) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the saver’s credit. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Retirement Savings 

5 for Working Americans Act’’. 

6 SEC. 2. MODIFICATION OF SAVER’S CREDIT. 

7 (a) FULL CREDIT AMOUNT MADE AS PAYMENT INTO

8 RETIREMENT ACCOUNTS.—The Internal Revenue Code of 

9 1986 is amended— 

10 (1) by redesignating section 25B as section 

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1 nated) from subpart A of part IV of subchapter A 

2 of chapter 1 (relating to nonrefundable personal 

3 credits) to immediately after section 30C in subpart 

4 B of such part (relating to other credits), and 

5 (2) by amending subsection (g) of section 30D 

6 (as so redesignated) to read as follows: 

7 ‘‘(g) CREDIT PAYABLE ONLY INTO RETIREMENT AC8 COUNT.— 

9 ‘‘(1) IN GENERAL.—The Secretary of the 

10 Treasury shall pay into the designated retirement 

11 account of the taxpayer an amount equal to the 

12 credit determined under subsection (a) for the tax13 able year. 

14 ‘‘(2) DESIGNATED RETIREMENT ACCOUNT.— 

15 For purposes of this subsection, the term ‘des16 ignated retirement account’ means any account or 

17 plan— 

18 ‘‘(A) with respect to which qualified retire19 ment savings contributions of the taxpayer are 

20 taken into account under subsection (a) for the 

21 taxable year, 

22 ‘‘(B) which is designated by the taxpayer 

23 (in such form and manner as the Secretary may 

24 provide) on the return of tax for the taxable 

25 year, and 


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1 ‘‘(C) which, under the terms of the account 

2 or plan, accepts the payment described in para3 graph (1). 

4 ‘‘(3) NO DOUBLE BENEFIT.—The credit deter5 mined under subsection (a) shall not be allowed as 

6 a credit against any tax imposed by this title.’’. 

7 (b) EXPANSION OF PHASEOUT RANGES.—Subsection 

8 (b) of section 30D of such Code, as redesignated by this 

9 section, is amended to read as follows: 

10 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

11 this section— 

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), the applicable percentage is 50 percent. 

14 ‘‘(2) PHASEOUT.—With respect to any taxpayer 

15 for any taxable year, the applicable percentage shall 

16 be reduced (but not below zero) by the percentage 

17 which bears the same ratio to 50 percent as— 

18 ‘‘(A) the excess of— 

19 ‘‘(i) the taxpayer’s adjusted gross in20 come for such taxable year, over 

21 ‘‘(ii) the applicable dollar amount, 

22 bears to 

23 ‘‘(B) the phaseout range. 


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1 If any reduction under this paragraph is not a mul2 tiple of 1 percent, such reduction shall be rounded 

3 to the nearest multiple of 1 percent. 

4 ‘‘(3) APPLICABLE DOLLAR AMOUNT; PHASEOUT

5 RANGE.—The applicable dollar amount and the 

6 phaseout range shall be determined in accordance 

7 with the following table: 

In the case of: The applicable dollar 

amount is: 

The phaseout 

range is: 

A joint return ..................................... $60,000 $10,000 

A head of a household ........................ $45,000 $7,500 

Any other case ................................... $30,000 $5,000’’. 

8 (c) TAX-PREFERRED EDUCATION SAVINGS TREATED

9 AS RETIREMENT SAVINGS.—Subsection (d) of section 

10 30D of such Code, as redesignated by this section, is 

11 amended by adding at the end the following new para12 graph: 

13 ‘‘(3) EDUCATION SAVINGS ACCOUNT CONTRIBU14 TIONS TREATED AS RETIREMENT SAVINGS.— 

15 Amounts contributed to qualified tuition programs 

16 under section 529 and amounts contributed to 

17 Coverdell education savings accounts under section 

18 530 shall be treated as qualified retirement savings 

19 contributions (subject to any reduction under para20 graph (2)).’’. 

21 (d) LIMITATION ON RETIREMENT CONTRIBUTIONS

22 TAKEN INTO ACCOUNT INDEXED FOR INFLATION.—SecVerDate Aug 31 2005 21:38 Jun 18, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2724.IH H2724

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1 tion 30D of such Code, as redesignated by this section, 

2 is amended by adding at the end the following new sub3 section: 

4 ‘‘(h) INFLATION ADJUSTMENT.—In the case of any 

5 taxable year beginning in a calendar year after 2007, the 

6 dollar amounts in subsection (a) shall be increased by an 

7 amount equal to— 

8 ‘‘(1) such dollar amount, multiplied by 

9 ‘‘(2) the cost-of-living adjustment determined 

10 under section 1(f)(3) for the calendar year in which 

11 the taxable year begins, determined by substituting 

12 ‘2006’ for ‘1992’ in subparagraph (B) thereof. 

13 Any increase determined under the preceding sentence 

14 shall be rounded to the nearest multiple of $100.’’. 

15 (e) CONFORMING AMENDMENTS.— 

16 (1) Section 24(b)(3)(B) of such Code is amend17 ed by striking ‘‘and 25B’’. 

18 (2) Section 25(e)(1)(C) of such Code is amend19 ed by striking ‘‘25B,’’. 

20 (3) Sections 26(a)(1), 904(i), and 1400C(d) of 

21 such Code are each amended by striking ‘‘24, and 

22 25B’’ and inserting ‘‘and 24’’. 

23 (4) The heading of section 30D of such Code, 

24 as redesignated by this section, is amended to read 

25 as follows: 


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1 ‘‘SEC. 30D. SAVER’S CREDIT.’’. 

2 (5) Section 30D(a) of such Code, as so redesig3 nated, is amended by striking ‘‘there shall be al4 lowed as a credit against the tax imposed by this 

5 subtitle for the taxable year’’ and inserting ‘‘the 

6 credit determined under this subsection for the tax7 able year is’’. 

8 (6) The table of sections for subpart A of part 

9 IV of subchapter A of chapter 1 of such Code is 

10 amended by striking the item relating to section 

11 25B. 

12 (7) The table of sections for subpart B of such 

13 part is amended by adding at the end the following 

14 new item: 

‘‘Sec. 30D. Saver’s credit.’’. 

15 (8) Section 1324(b)(2) of title 31, United 

16 States Code, is amended by inserting ‘‘or 30D’’ after 

17 ‘‘section 35’’. 

18 (f) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years beginning after 

20 December 31, 2007. 

Æ 


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