I 

113TH CONGRESS 

1ST SESSION H. R. 837 

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 

FEBRUARY 26, 2013 

Mr. NEAL (for himself, Mr. LEWIS, Mr. KIND, and Mr. ELLISON) 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 2013’’. 

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

7 (a) 50 PERCENT CREDIT FOR ALL TAXPAYERS: EX8 PANSION OF PHASEOUT RANGES.—Subsection (b) of secVerDate Mar 15 2010 02:18 Mar 01, 2013 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H837.IH H837

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1 tion 25B of the Internal Revenue Code of 1986 is amend2 ed to read as follows: 

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

4 this section— 

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (2), the applicable percentage is 50 percent. 

7 ‘‘(2) PHASEOUT.—The percentage under para8 graph (1) shall be reduced (but not below zero) by 

9 the number of percentage points which bears the 

10 same ratio to 50 percentage points as— 

11 ‘‘(A) the excess of— 

12 ‘‘(i) the taxpayer’s adjusted gross in13 come for such taxable year, over 

14 ‘‘(ii) the applicable dollar amount, 

15 bears to 

16 ‘‘(B) the phaseout range. 

17 If any reduction determined under this paragraph is 

18 not a whole percentage point, such reduction shall be 

19 rounded to the nearest whole percentage point. 

20 ‘‘(3) APPLICABLE DOLLAR AMOUNT; PHASEOUT

21 RANGE.— 

22 ‘‘(A) JOINT RETURNS.—Except as pro23 vided in subparagraph (B)— 

24 ‘‘(i) the applicable dollar amount is 

25 $65,000, and 


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

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

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

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

amount and the phaseout range shall be 3 5 ⁄4

6 of the amounts applicable under subpara7 graph (A) (as adjusted under paragraph 

8 (4)), and 

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

10 joint return and who is not a head of a 

11 household (as so defined), the applicable 

12 dollar amount and the phaseout range 

shall be 1 13 ⁄2 of the amounts applicable 

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

15 ‘‘(4) INFLATION ADJUSTMENT OF APPLICABLE

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

17 beginning in a calendar year after 2014, the dollar 

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

19 an amount equal to— 

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

21 ‘‘(B) the cost-of-living adjustment deter22 mined under section 1(f)(3) for the calendar 

23 year in which the taxable year begins, deter24 mined by substituting ‘calendar year 2013’ for 


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1 ‘calendar year 1992’ in subparagraph (B) 

2 thereof. 

3 Any increase determined under the preceding sen4 tence shall be rounded to the nearest multiple of 

5 $500.’’. 

6 (b) CREDIT MADE REFUNDABLE; MATCHING CON7 TRIBUTIONS.— 

8 (1) CREDIT MADE REFUNDABLE.—The Internal 

9 Revenue Code of 1986 is amended by moving section 

10 25B to subpart C of part IV of subchapter A of 

11 chapter 1 of such Code (relating to refundable cred12 its), by inserting section 25B after section 36B, and 

13 by redesignating section 25B as section 36C. 

14 (2) MATCHING CONTRIBUTIONS.—Section 36C 

15 of such Code, as redesignated by paragraph (1), is 

16 amended by adding at the end the following: 

17 ‘‘(g) MATCHING CONTRIBUTIONS.— 

18 ‘‘(1) IN GENERAL.—The credit allowed to an el19 igible individual under this section for any taxable 

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

21 this subsection) be allowed if— 

22 ‘‘(A) the individual consents to the applica23 tion of paragraph (2), and 

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

25 effect for such year under paragraph (3). 


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1 ‘‘(2) CREDIT PAID INTO DESIGNATED RETIRE2 MENT ACCOUNT.—Any credit under this section for 

3 any taxable year shall be paid by the Secretary into 

4 the designated retirement account of the individual 

5 for such year. The amount payable under the pre6 ceding sentence shall be subject to the reductions 

7 under section 6402 in the same manner as if such 

8 amount were an overpayment. The amount so paid 

9 shall be treated as refunded to such individual. 

10 ‘‘(3) DESIGNATED RETIREMENT ACCOUNT.— 

11 For purposes of this subsection, the term ‘des12 ignated retirement account’ means any account or 

13 plan— 

14 ‘‘(A) of a type to which qualified retire15 ment savings contributions may be made, 

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

17 and 

18 ‘‘(C) which is designated by such indi19 vidual (in such form and manner as the Sec20 retary may provide) on the return of tax for the 

21 taxable year. 

22 ‘‘(4) TREATMENT OF MATCHING CONTRIBU23 TIONS.—In the case of an amount paid under para24 graph (2) into a designated retirement account— 


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1 ‘‘(A) any dollar limitation otherwise appli2 cable to the amount of contributions or defer3 rals to such account shall be increased by the 

4 amount so paid, 

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

6 shall not be increased by reason of the amount 

7 so paid, and 

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

9 employer contribution for the plan year in 

10 which such amount is paid for purposes of— 

11 ‘‘(i) section 401(k)(3), and 

12 ‘‘(ii) section 408(k)(6)(A)(iii). 

13 ‘‘(5) REGULATIONS.—The Secretary shall pre14 scribe such regulations or other guidance as may be 

15 necessary to address situations under which the Sec16 retary is not able to make a payment to a designated 

17 retirement account of an individual, including a plan 

18 of an employer for which the individual no longer 

19 works and to an account that does not exist.’’. 

20 (3) CONFORMING AMENDMENTS.— 

21 (A) Section 6211(b)(4)(A) of such Code is 

22 amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 

23 (B) The table of sections for subpart A of 

24 part IV of subchapter A of chapter 1 of such 


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1 Code is amended by striking the item relating 

2 to section 25B. 

3 (C) The table of sections for subpart C of 

4 such part is amended by adding at the end the 

5 following new item: 

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

6 (D) Section 1324(b)(2) of title 31, United 

7 States Code, is amended by inserting ‘‘36C,’’ 

8 after ‘‘36B,’’. 

9 (c) MAXIMUM CONTRIBUTIONS.—Subsection (a) of 

10 section 36C of such Code, as redesignated by subsection 

11 (b), is amended to read as follows: 

12 ‘‘(a) ALLOWANCE OF CREDIT.— 

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

14 individual, there shall be allowed as a credit against 

15 the tax imposed by this subtitle for the taxable year 

16 an amount equal to the applicable percentage of so 

17 much of the qualified retirement savings contribu18 tions of the eligible individual for the taxable year as 

19 do not exceed the contribution limit. 

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

21 paragraph (1)— 

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

23 provided in this paragraph, the contribution 

24 limit is $500 ($1,500 for taxable years begin25 ning after 2023). 


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1 ‘‘(B) ANNUAL INCREASES TO REACH

2 $1,500.—In the case of taxable years beginning 

3 in a calendar year after 2013 and before 2024, 

4 the contribution limit shall be the sum of— 

5 ‘‘(i) the contribution limit for taxable 

6 years beginning in the preceding calendar 

7 year (as increased under this subpara8 graph), and 

9 ‘‘(ii) $100. 

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

11 case of any taxable year beginning in a calendar 

12 year after 2023, the $1,500 amount in subpara13 graph (A) shall be increased by an amount 

14 equal to— 

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

16 ‘‘(ii) the cost-of-living adjustment de17 termined under section 1(f)(3) for the cal18 endar year in which the taxable year be19 gins, determined by substituting ‘calendar 

20 year 2022’ for ‘calendar year 1992’ in sub21 paragraph (B) thereof. 

22 Any increase determined under the preceding 

23 sentence shall be rounded to the nearest mul24 tiple of $50.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2013. 

Æ 


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