I 

116TH CONGRESS 

2D SESSION H. R. 7418 

To amend the Internal Revenue Code of 1986 to provide matching payments 

for retirement savings contributions by certain individuals. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 30, 2020 

Ms. JUDY CHU of California (for herself, Mr. PANETTA, and Ms. SEWELL of 

Alabama) 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 provide 

matching payments for retirement savings contributions 

by certain individuals. 

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 ‘‘Encouraging Ameri5 cans to Save Act’’. 


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1 SEC. 2. MATCHING PAYMENTS FOR ELECTIVE DEFERRAL 

2 AND IRA CONTRIBUTIONS BY CERTAIN INDI3 VIDUALS. 

4 (a) IN GENERAL.—Subchapter B of chapter 65 of the 

5 Internal Revenue Code of 1986 is amended by adding at 

6 the end the following new section: 

7 ‘‘SEC. 6433. SAVER’S MATCH. 

8 ‘‘(a) IN GENERAL.— 

9 ‘‘(1) ALLOWANCE OF CREDIT.—Any eligible in10 dividual who makes qualified retirement savings con11 tributions for the taxable year shall be allowed a 

12 credit for such taxable year in an amount equal to 

13 the applicable percentage of so much of the qualified 

14 retirement savings contributions made by such eligi15 ble individual for the taxable year as does not exceed 

16 $3,000. 

17 ‘‘(2) PAYMENT OF CREDIT.—The credit under 

18 this section shall be paid by the Secretary as a con19 tribution (as soon as practicable after the eligible in20 dividual has filed a tax return for the taxable year) 

21 to the applicable retirement savings vehicle of an eli22 gible individual. 

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

24 this section— 

25 ‘‘(1) IN GENERAL.—Except as provided in para26 graph (2), the applicable percentage is 50 percent. 


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1 ‘‘(2) PHASEOUT.—The percentage under para2 graph (1) shall be reduced (but not below zero) by 

3 the number of percentage points which bears the 

4 same ratio to 50 percentage points as— 

5 ‘‘(A) the excess of— 

6 ‘‘(i) the taxpayer’s modified adjusted 

7 gross income for such taxable year, over 

8 ‘‘(ii) the applicable dollar amount, 

9 bears to 

10 ‘‘(B) the phaseout range. 

11 If any reduction determined under this paragraph is 

12 not a whole percentage point, such reduction shall be 

13 rounded to the next lowest whole percentage point. 

14 ‘‘(3) APPLICABLE DOLLAR AMOUNT; PHASEOUT

15 RANGE.— 

16 ‘‘(A) JOINT RETURNS.—Except as pro17 vided in subparagraph (B)— 

18 ‘‘(i) the applicable dollar amount is 

19 $80,000, and 

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

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

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

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

amount and the phaseout range shall be 3 24 ⁄4

25 of the amounts applicable under subparaVerDate Sep 11 2014 23:27 Aug 06, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7418.IH H7418

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1 graph (A) (as adjusted under subsection 

2 (g)), and 

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

4 joint return and who is not a head of a 

5 household (as so defined), the applicable 

6 dollar amount and the phaseout range 

shall be 1 7 ⁄2 of the amounts applicable 

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

9 ‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this 

10 section— 

11 ‘‘(1) IN GENERAL.—The term ‘eligible indi12 vidual’ means any individual if such individual has 

13 attained the age of 18 as of the close of the taxable 

14 year. 

15 ‘‘(2) DEPENDENTS AND FULL-TIME STUDENTS

16 NOT ELIGIBLE.—The term ‘eligible individual’ shall 

17 not include— 

18 ‘‘(A) any individual with respect to whom 

19 a deduction under section 151 is allowed to an20 other taxpayer for a taxable year beginning in 

21 the calendar year in which such individual’s 

22 taxable year begins, and 

23 ‘‘(B) any individual who is a student (as 

24 defined in section 152(f)(2)). 


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1 ‘‘(d) QUALIFIED RETIREMENT SAVINGS CONTRIBU2 TIONS.—For purposes of this section— 

3 ‘‘(1) IN GENERAL.—The term ‘qualified retire4 ment savings contributions’ means, with respect to 

5 any taxable year, the sum of— 

6 ‘‘(A) the amount of the qualified retire7 ment contributions (as defined in section 

8 219(e)) made by the eligible individual, 

9 ‘‘(B) the amount of— 

10 ‘‘(i) any elective deferrals (as defined 

11 in section 402(g)(3)) of such individual, 

12 and 

13 ‘‘(ii) any elective deferral of com14 pensation by such individual under an eli15 gible deferred compensation plan (as de16 fined in section 457(b)) of an eligible em17 ployer described in section 457(e)(1)(A), 

18 and 

19 ‘‘(C) the amount of voluntary employee 

20 contributions by such individual to any qualified 

21 retirement plan (as defined in section 4974(c)). 

22 Such term shall not include any amount attributable 

23 to a payment under subsection (a). 

24 ‘‘(2) REDUCTION FOR CERTAIN DISTRIBU25 TIONS.— 


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1 ‘‘(A) IN GENERAL.—The qualified retire2 ment savings contributions determined under 

3 paragraph (1) for a taxable year shall be re4 duced (but not below zero) by the aggregate 

5 distributions received by the individual during 

6 the testing period from any entity of a type to 

7 which contributions under paragraph (1) may 

8 be made. 

9 ‘‘(B) TESTING PERIOD.—For purposes of 

10 subparagraph (A), the testing period, with re11 spect to a taxable year, is the period which in12 cludes— 

13 ‘‘(i) such taxable year, 

14 ‘‘(ii) the 2 preceding taxable years, 

15 and 

16 ‘‘(iii) the period after such taxable 

17 year and before the due date (including ex18 tensions) for filing the return of tax for 

19 such taxable year. 

20 ‘‘(C) EXCEPTED DISTRIBUTIONS.—There 

21 shall not be taken into account under subpara22 graph (A)— 

23 ‘‘(i) any distribution referred to in 

24 section 72(p), 401(k)(8), 401(m)(6), 

25 402(g)(2), 404(k), or 408(d)(4), 


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1 ‘‘(ii) any distribution to which section 

2 408(d)(3) or 408A(d)(3) applies, and 

3 ‘‘(iii) any portion of a distribution if 

4 such portion is transferred or paid in a 

5 rollover contribution (as defined in section 

6 402(c), 403(a)(4), 403(b)(8), 408A(e), or 

7 457(e)(16)) to an account or plan to which 

8 qualified retirement contributions can be 

9 made. 

10 ‘‘(D) TREATMENT OF DISTRIBUTIONS RE11 CEIVED BY SPOUSE OF INDIVIDUAL.—For pur12 poses of determining distributions received by 

13 an individual under subparagraph (A) for any 

14 taxable year, any distribution received by the 

15 spouse of such individual shall be treated as re16 ceived by such individual if such individual and 

17 spouse file a joint return for such taxable year 

18 and for the taxable year during which the 

19 spouse receives the distribution. 

20 ‘‘(e) APPLICABLE RETIREMENT SAVINGS VEHI21 CLE.— 

22 ‘‘(1) IN GENERAL.—The term ‘applicable retire23 ment savings vehicle’ means— 

24 ‘‘(A) an account or plan elected by the eli25 gible individual under paragraph (2), or 


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1 ‘‘(B) if no such election is made or the 

2 Secretary is not able to make a contribution 

3 into the account or plan selected by the eligible 

4 individual, a MyRA established for the benefit 

5 of the eligible individual. 

6 For purposes of subparagraph (B), if no MyRA has 

7 previously been established for the benefit of the in8 dividual, the Secretary shall establish such an ac9 count for such individual for purposes of contribu10 tions under this section. 

11 ‘‘(2) OTHER RETIREMENT VEHICLES.—An eligi12 ble individual may elect to have the amount deter13 mined under subsection (a) contributed to an ac14 count or plan which— 

15 ‘‘(A) is a Roth IRA or a designated Roth 

16 account (within the meaning of section 402A) 

17 of an applicable retirement plan (as defined in 

18 section 402A(e)(1)), 

19 ‘‘(B) is for the benefit of the eligible indi20 vidual, 

21 ‘‘(C) accepts contributions made under this 

22 section, and 

23 ‘‘(D) is designated by such individual (in 

24 such form and manner as the Secretary may 


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1 provide) on the return of tax for the taxable 

2 year. 

3 ‘‘(3) MYRA.—For purposes of paragraph (1), 

4 the term ‘MyRA’ means a Roth IRA which is estab5 lished— 

6 ‘‘(A) under the MyRA program established 

7 under section 3 of the Encouraging Americans 

8 to Save Act, and 

9 ‘‘(B) by the individual for whose benefit 

10 the Roth IRA was created or by the Secretary 

11 on behalf of such individual. 

12 ‘‘(f) OTHER DEFINITIONS AND SPECIAL RULES.— 

13 ‘‘(1) MODIFIED ADJUSTED GROSS INCOME.— 

14 For purposes of this section, the term ‘modified ad15 justed gross income’ means adjusted gross income— 

16 ‘‘(A) determined without regard to sections 

17 911, 931, and 933, and 

18 ‘‘(B) determined without regard to any ex19 clusion or deduction allowed for any qualified 

20 retirement savings contribution made during 

21 the taxable year. 

22 ‘‘(2) TREATMENT OF CONTRIBUTIONS.—In the 

23 case of any contribution under subsection (a)(2)— 

24 ‘‘(A) except as otherwise provided in this 

25 section or by the Secretary under regulations, 


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1 such contribution shall be treated in the same 

2 manner as a contribution made by the indi3 vidual on whose behalf such contribution was 

4 made, 

5 ‘‘(B) such contribution shall not be treated 

6 as income to the taxpayer, and 

7 ‘‘(C) such contribution shall not be taken 

8 into account with respect to any applicable limi9 tation under sections 402(g)(1), 403(b), 

10 408(a)(1), 408(b)(2)(B), 408A(c)(2), 414(v)(2), 

11 415(c), or 457(b)(2). 

12 ‘‘(3) TREATMENT OF QUALIFIED PLANS, ETC.— 

13 A plan or arrangement to which a contribution is 

14 made under this section shall not be treated as vio15 lating any requirement under section 401, 403, 408, 

16 or 457 solely by reason of accepting such contribu17 tion. 

18 ‘‘(4) ERRONEOUS CREDITS.—If any contribu19 tion is erroneously paid under subsection (a)(2), the 

20 amount of such erroneous payment shall be treated 

21 as an underpayment of tax. 

22 ‘‘(g) INFLATION ADJUSTMENTS.— 

23 ‘‘(1) IN GENERAL.—In the case of any taxable 

24 year beginning in a calendar year after 2021, each 

25 of the dollar amounts in subsections (a)(2) and 


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1 (b)(3)(A)(i) shall be increased by an amount equal 

2 to— 

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

4 ‘‘(B) the cost-of-living adjustment deter5 mined under section 1(f)(3) for the calendar 

6 year in which the taxable year begins, deter7 mined by substituting ‘calendar year 2020’ for 

8 ‘calendar year 2016’ in subparagraph (A)(ii) 

9 thereof. 

10 ‘‘(2) ROUNDING.—Any increase determined 

11 under paragraph (1) shall be rounded to the nearest 

12 multiple of— 

13 ‘‘(A) $100 in the case of an adjustment of 

14 the amount in subsection (a)(2), and 

15 ‘‘(B) $1,000 in the case of an adjustment 

16 of the amount in subsection (b)(3)(A)(i).’’. 

17 (b) PAYMENT AUTHORITY.—Section 1324(b)(2) of 

18 title 31, United States Code, is amended by striking 

19 ‘‘6431’’ and inserting ‘‘6433’’. 

20 (c) DEFICIENCIES.—Section 6211(b)(4) of the Inter21 nal Revenue Code of 1986 is amended by striking ‘‘and 

22 6428’’ and inserting ‘‘6428, and 6433’’. 

23 (d) CONFORMING AMENDMENTS.— 

24 (1) Section 25B of the Internal Revenue Code 

25 of 1986 is amended to read as follows: 


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1 ‘‘SEC. 25B. SAVER’S CREDIT. 

2 ‘‘For payment of credit related to qualified retire3 ment savings contributions, see section 6433.’’. 

4 (2) The table of sections for subchapter B of 

5 chapter 65 of such Code is amended by adding after 

6 the item relating to section 6430 the following new 

7 item: 

‘‘Sec. 6433. Saver’s match.’’. 

8 (3) 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 25B 

11 and inserting the following new item: 

‘‘Sec. 25B. Saver’s credit.’’ 

12 (e) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2020. 

15 SEC. 3. ESTABLISHMENT OF MYRA PROGRAM. 

16 (a) IN GENERAL.—The Secretary of the Treasury (or 

17 the Secretary’s delegate) shall, not later than December 

18 31, 2020, establish a permanent program, to be known 

19 as the ‘‘MyRA Program’’, which meets the requirements 

20 of this section to establish and maintain a Roth IRA on 

21 behalf of individuals. 

22 (b) PROGRAM SPECIFICATIONS.— 

23 (1) IN GENERAL.— 


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1 (A) ROTH IRAS.—The MyRA Program es2 tablished under this section shall— 

3 (i) permit an individual to establish a 

4 Roth IRA which satisfies the requirements 

5 of section 408A of the Internal Revenue 

6 Code of 1986 on behalf of the individual; 

7 (ii) permit an employer to establish 

8 such a Roth IRA on behalf of 1 or more 

9 employees of such employer; 

10 (iii) require the assets of each Roth 

11 IRA established under the program to be 

12 held by the designated Roth IRA custo13 dian; 

14 (iv) permit contributions to be made 

15 periodically to such Roth IRAs by direct 

16 deposit or other electronic means and by 

17 methods that provide access for the 

18 unbanked; 

19 (v) permit distributions and rollovers 

20 from such Roth IRAs upon request of the 

21 account owner; 

22 (vi) include procedures to consolidate 

23 multiple accounts established for the same 

24 individual; and 


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1 (vii) ensure that such Roth IRAs are 

2 invested solely in retirement savings bonds 

3 issued by the Department of the Treasury 

4 for the purpose of the MyRA Program. 

5 (B) REGULATIONS, ETC.—The Secretary 

6 of the Treasury shall have authority to promul7 gate such regulations, rules, and other guidance 

8 as are necessary to implement the MyRA pro9 gram, and are consistent with this section, as 

10 well as coordination rules permitting Roth IRAs 

11 to be established under the MyRA program in 

12 connection with State and local laws that enroll 

13 residents in Roth IRAs. 

14 (2) NO FEES.—No fees shall be assessed on 

15 participants in the MyRA Program. 

16 (3) LIMITATIONS.— 

17 (A) CONTRIBUTION MINIMUM.—The Sec18 retary of the Treasury may establish minimum 

19 amounts for initial and additional contributions 

20 to a Roth IRA under the MyRA Program, not 

21 to exceed $5. 

22 (B) ROLLOVER CONTRIBUTIONS NOT PER23 MITTED.—No rollover contribution shall be ac24 cepted to a Roth IRA under the MyRA pro25 gram. 


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1 (C) ACCOUNT MAXIMUM.—No contribu2 tions shall be credited to a Roth IRA under the 

3 MyRA Program after the account balance of 

4 such Roth IRA reaches $15,000. 

5 (D) LIMITATION ON PARTICIPATION.— 

6 Within a reasonable amount of time after the 

7 earlier of— 

8 (i) the date the account balance of a 

9 Roth IRA under the MyRA Program 

10 reaches $15,000; or 

11 (ii) the earlier of— 

12 (I) the date that the participant 

13 has been a participant in the MyRA 

14 Program for 30 years; or 

15 (II) the date that the participant 

reaches age 591 16 ⁄2; 

17 the designated Roth IRA custodian shall pro18 vide notice to the participant that no further 

19 contributions will be accepted and that the par20 ticipant may elect to have the account balance 

21 rolled over to another Roth IRA according to 

22 the rules relating to rollovers and conversions of 

23 Roth IRAs under the Internal Revenue Code of 

24 1986. 

25 (E) ADJUSTMENT FOR INFLATION.— 


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1 (i) IN GENERAL.—In the case of any 

2 calendar year after 2020, the $15,000 

3 amount in subparagraphs (C) and (D) and 

4 subsection (c)(3)(B) shall be increased by 

5 an amount equal to— 

6 (I) such dollar amount, multi7 plied by 

8 (II) the cost-of-living adjustment 

9 determined under section 1(f)(3) of 

10 the Internal Revenue Code of 1986 

11 for the calendar year, determined by 

12 substituting ‘‘calendar year 2020’’ for 

13 ‘‘calendar year 2016’’ in subpara14 graph (A)(ii) thereof. 

15 (ii) ROUNDING.—If any increase de16 termined under clause (i) is not a multiple 

17 of $50, such increase shall be rounded to 

18 the next lowest multiple of $50. 

19 (4) DESIGNATED ROTH IRA CUSTODIAN.—For 

20 purposes of this section, the designated Roth IRA 

21 custodian is the person designated by the Secretary 

22 of the Treasury to act as custodian of the Roth 

23 IRAs established on behalf of participants in the re24 tirement savings program of such Department. 


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1 (c) RETIREMENT SAVINGS BONDS.—For purposes of 

2 this section— 

3 (1) IN GENERAL.—The term ‘‘retirement sav4 ings bond’’ means an interest-bearing electronic 

5 United States savings bond issued to the designated 

6 Roth IRA custodian which is available only to par7 ticipants in the MyRA Program. 

8 (2) INTEREST RATE.—Bonds issued under the 

9 MyRA program shall earn interest at a rate equal to 

10 the greater of (determined on the issue date)— 

11 (A) the rate earned by the Government Se12 curities Investment Fund established under sec13 tion 8438(b)(1) of title 5, United States Code; 

14 or 

15 (B) a Series I United States savings bond. 

16 (3) BONDS TO BE CREDITED TO SINGLE AC17 COUNT.—Each retirement savings bond issued to the 

18 designated Roth IRA custodian shall be credited to 

19 a single Roth IRA established through the MyRA 

20 Program on behalf of a participant. 

21 (4) REISSUE IN CASE OF CHANGE IN CUSTO22 DIAN.—If a successor designated Roth IRA custo23 dian is designated under subsection (b)(4), the re24 tirement savings bonds issued to the predecessor 


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1 designated Roth IRA custodian shall be reissued to 

2 such successor. 

3 (d) ROTH IRA.—For purposes of this section, the 

4 term ‘‘Roth IRA’’ has the meaning given such term by 

5 section 408A(b) of the Internal Revenue Code of 1986. 

6 (e) SECRETARY.—For purposes of this section, the 

7 term ‘‘Secretary’’ means the Secretary of the Treasury (or 

8 the Secretary’s delegate). 

9 SEC. 4. PROMOTION AND GUIDANCE. 

10 (a) PROMOTION.— 

11 (1) IN GENERAL.—The Secretary shall take 

12 such steps as the Secretary determines are necessary 

13 and appropriate to increase public awareness of the 

14 benefits provided under section 6433 of the Internal 

15 Revenue Code of 1986 and the MyRA Program es16 tablished under section 3 of this Act. 

17 (2) REPORT TO CONGRESS.— 

18 (A) IN GENERAL.—Not later than 90 days 

19 after the date of the enactment of this Act, the 

20 Secretary shall provide a report to Congress to 

21 summarize the anticipated promotion efforts of 

22 the Treasury with respect to paragraph (1). 

23 (B) CONTENTS.—The report under sub24 paragraph (A) shall include— 

25 (i) a description of plans for— 


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1 (I) the development and distribu2 tion of digital and print materials, in3 cluding the distribution of such mate4 rials to States for participants in 

5 State-sponsored retirement savings 

6 plans, and 

7 (II) the translation of such mate8 rials into the five most commonly spo9 ken languages in the United States 

10 after English (as determined by 

11 American Community Survey data), 

12 and 

13 (ii) such other information as the Sec14 retary determines necessary. 

15 (b) GUIDANCE.—Not later than December 31, 2020, 

16 the Secretary shall issue guidance on the implementation 

17 and administration of the amendments made by section 

18 2 of this Act. 

19 (c) SECRETARY.—For purposes of this section, the 

20 term ‘‘Secretary’’ means the Secretary of the Treasury (or 

21 the Secretary’s delegate). 

Æ 


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