I 

111TH CONGRESS 

1ST SESSION H. R. 1961 

To amend the Internal Revenue Code of 1986 to expand the availability 

of the saver’s credit, to make the credit refundable, and to make Federal 

matching contributions into the retirement savings of the taxpayer. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 2, 2009 

Mr. POMEROY (for himself, Mr. KIND, Mr. MCDERMOTT, Mr. BLUMENAUER, 

Ms. SCHWARTZ, Mr. SESTAK, Mr. ALTMIRE, and Mr. THOMPSON of California) 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 expand 

the availability of the saver’s credit, to make the credit 

refundable, and to make Federal matching contributions 

into the retirement savings of the taxpayer. 

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 ‘‘Savings for American 

5 Families’ Future Act of 2009’’. 


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

2 (a) 50 PERCENT CREDIT FOR ALL TAXPAYERS: EX3 PANSION OF PHASEOUT RANGES.—Subsection (b) of sec4 tion 25B of the Internal Revenue Code of 1986 is amend5 ed to read as follows: 

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

7 this section— 

8 ‘‘(1) IN GENERAL.—Except as provided in para9 graph (2), the applicable percentage is 50 percent. 

10 ‘‘(2) PHASEOUT.—The percentage under para11 graph (1) shall be reduced (but not below zero) by 

12 the number of percentage points which bears the 

13 same ratio to 50 percentage points as— 

14 ‘‘(A) the excess of— 

15 ‘‘(i) the taxpayer’s adjusted gross in16 come for such taxable year, over 

17 ‘‘(ii) the applicable dollar amount, 

18 bears to 

19 ‘‘(B) the phaseout range. 

20 If any reduction determined under this paragraph is 

21 not a whole percentage point, such reduction shall be 

22 rounded to the nearest whole percentage point. 

23 ‘‘(3) APPLICABLE DOLLAR AMOUNT; PHASEOUT

24 RANGE.— 

25 ‘‘(A) JOINT RETURNS.—Except as pro26 vided in subparagraph (B)— 


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1 ‘‘(i) the applicable dollar amount is 

2 $65,000, and 

3 ‘‘(ii) the phaseout range is $20,000. 

4 ‘‘(B) OTHER RETURNS.—In the case of— 

5 ‘‘(i) a head of a household (as defined 

6 in section 2(b)), the applicable dollar 

amount and the phaseout range shall be 3 7 ⁄4

8 of the amounts applicable under subpara9 graph (A) (as adjusted under paragraph 

10 (4)), and 

11 ‘‘(ii) any taxpayer who is not filing a 

12 joint return and who is not a head of a 

13 household (as so defined), the applicable 

14 dollar amount and the phaseout range 

shall be 1 15 ⁄2 of the amounts applicable 

16 under subparagraph (A) (as so adjusted). 

17 ‘‘(4) INFLATION ADJUSTMENT OF APPLICABLE

18 DOLLAR AMOUNT.—In the case of any taxable year 

19 beginning in a calendar year after 2010, the dollar 

20 amount in paragraph (3)(A)(i) shall be increased by 

21 an amount equal to— 

22 ‘‘(A) such dollar amount, multiplied by 

23 ‘‘(B) the cost-of-living adjustment deter24 mined under section 1(f)(3) for the calendar 

25 year in which the taxable year begins, deterVerDate Nov 24 2008 00:35 Apr 07, 2009 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1961.IH H1961

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1 mined by substituting ‘calendar year 2009’ for 

2 ‘calendar year 1992’ in subparagraph (B) 

3 thereof. 

4 Any increase determined under the preceding sen5 tence shall be rounded to the nearest multiple of 

6 $500.’’. 

7 (b) CREDIT MADE REFUNDABLE; MATCHING CON8 TRIBUTIONS.— 

9 (1) CREDIT MADE REFUNDABLE.—The Internal 

10 Revenue Code of 1986 is amended by moving section 

11 25B to subpart C of part IV of subchapter A of 

12 chapter 1 of such Code (relating to refundable cred13 its), by inserting section 25B after section 36A, and 

14 by redesignating section 25B as section 36B. 

15 (2) MATCHING CONTRIBUTIONS.—Subsection 

16 (g) of section 36B of such Code, as redesignated by 

17 paragraph (1), is amended to read as follows: 

18 ‘‘(g) MATCHING CONTRIBUTIONS.— 

19 ‘‘(1) IN GENERAL.—The credit allowed to an el20 igible individual under this section for any taxable 

21 year shall be twice the credit which would (but for 

22 this subsection) be allowed if— 

23 ‘‘(A) the individual consents to the applica24 tion of paragraph (2), and 


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1 ‘‘(B) a designation by such individual is in 

2 effect for such year under paragraph (3). 

3 ‘‘(2) CREDIT PAID INTO DESIGNATED RETIRE4 MENT ACCOUNT.—Any increase in credit under 

5 paragraph (1) for any taxable year shall be paid by 

6 the Secretary into the designated retirement account 

7 of the individual for such year. The amount payable 

8 under the preceding sentence shall be subject to the 

9 reductions under section 6402 in the same manner 

10 as if such amount were an overpayment. The 

11 amount so paid shall be treated as refunded to such 

12 individual. 

13 ‘‘(3) DESIGNATED RETIREMENT ACCOUNT.— 

14 For purposes of this subsection, the term ‘des15 ignated retirement account’ means any account or 

16 plan— 

17 ‘‘(A) of a type to which qualified retire18 ment savings contributions may be made, 

19 ‘‘(B) which is for such individual’s benefit, 

20 and 

21 ‘‘(C) which is designated by such indi22 vidual (in such form and manner as the Sec23 retary may provide) on the return of tax for the 

24 taxable year. 


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1 ‘‘(4) TREATMENT OF MATCHING CONTRIBU2 TIONS.—In the case of an amount paid under para3 graph (2) into a designated retirement account— 

4 ‘‘(A) any dollar limitation otherwise appli5 cable to the amount of contributions or defer6 rals to such account shall be increased by the 

7 amount so paid, 

8 ‘‘(B) the individual’s basis in such account 

9 shall not be increased by reason of the amount 

10 so paid, and 

11 ‘‘(C) such amount shall be treated as an 

12 employer contribution for purposes of— 

13 ‘‘(i) section 401(k)(3), and 

14 ‘‘(ii) section 408(k)(6)(A)(iii).’’. 

15 (3) CONFORMING AMENDMENTS.— 

16 (A) Sections 24(b)(3)(B), 25(e)(1)(C), 

17 26(a)(1), and 1400C(d) of such Code are each 

18 amended by striking ‘‘25B,’’. 

19 (B) The last sentence of section 25A(i)(5) 

20 of such Code is amended by striking ‘‘25B’’ and 

21 inserting ‘‘36B’’. 

22 (C) Sections 904(i) of such Code is amend23 ed by striking ‘‘23, 24, and 25B,’’ and inserting 

24 ‘‘23 and 24’’. 


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1 (D) Section 6211(b)(4)(A) of such Code is 

2 amended by inserting ‘‘36B,’’ after ‘‘36A,’’. 

3 (E) The table of sections for subpart A of 

4 part IV of subchapter A of chapter 1 of such 

5 Code is amended by striking the item relating 

6 to section 25B. 

7 (F) The table of sections for subpart C of 

8 such part is amended by adding at the end the 

9 following new item: 

‘‘Sec. 36B. Elective deferrals and IRA contributions by certain individuals.’’. 

10 (G) Section 1324(b)(2) of title 31, United 

11 States Code, is amended by inserting ‘‘36B,’’ 

12 after ‘‘36A,’’. 

13 (c) MAXIMUM CONTRIBUTIONS.— 

14 (1) Subsection (a) of section 36B of such Code, 

15 as redesignated by subsection (b), is amended to 

16 read as follows: 

17 ‘‘(a) ALLOWANCE OF CREDIT.— 

18 ‘‘(1) IN GENERAL.—In the case of an eligible 

19 individual, there shall be allowed as a credit against 

20 the tax imposed by this subtitle for the taxable year 

21 an amount equal to the applicable percentage of so 

22 much of the qualified retirement savings contribu23 tions of the eligible individual for the taxable year as 

24 do not exceed the contribution limit. 


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1 ‘‘(2) CONTRIBUTION LIMIT.—For purposes of 

2 paragraph (1)— 

3 ‘‘(A) IN GENERAL.—Except as otherwise 

4 provided in this paragraph, the contribution 

5 limit is $500 ($1,500 for taxable years begin6 ning after 2020). 

7 ‘‘(B) ANNUAL INCREASES TO REACH

8 $1,500.—In the case of taxable years beginning 

9 in a calendar year after 2010 and before 2021, 

10 the contribution limit shall be the sum of— 

11 ‘‘(i) the contribution limit for taxable 

12 years beginning in the preceding calendar 

13 year (as increased under this subpara14 graph), and 

15 ‘‘(ii) $100. 

16 ‘‘(C) INFLATION ADJUSTMENT.—In the 

17 case of any taxable year beginning in a calendar 

18 year after 2020, the $1,500 amount in subpara19 graph (A) shall be increased by an amount 

20 equal to— 

21 ‘‘(i) such dollar amount, multiplied by 

22 ‘‘(ii) the cost-of-living adjustment de23 termined under section 1(f)(3) for the cal24 endar year in which the taxable year be25 gins, determined by substituting ‘calendar 


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1 year 2019’ for ‘calendar year 1992’ in sub2 paragraph (B) thereof. 

3 Any increase determined under the preceding 

4 sentence shall be rounded to the nearest mul5 tiple of $50.’’. 

6 (d) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2009. 

Æ 


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