I 

111TH CONGRESS 

2D SESSION H. R. 5031 

To amend the Internal Revenue Code of 1986 to allow a credit against 

tax for individuals age 18 through 30 for certain retirement contributions. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 15, 2010 

Mrs. CAPITO 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 allow a 

credit against tax for individuals age 18 through 30 

for certain retirement contributions. 

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 ‘‘Young Savers’ Tax 

5 Credit Act of 2010’’. 

6 SEC. 2. YOUNG SAVER’S CREDIT. 

7 (a) IN GENERAL.—Section 25B of the Internal Rev8 enue Code of 1986 (relating to elective deferrals and IRA 

9 contributions by certain individuals) is amended by adding 

10 at the end the following new subsection: 


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1 ‘‘(h) YOUNG SAVER’S CREDIT.— 

2 ‘‘(1) IN GENERAL.—In the case of a qualified 

3 young saver, the credit determined under subsection 

4 (a) shall be an amount equal to so much of the 

5 qualified retirement savings contributions of such in6 dividual for the taxable year as does not exceed 

7 $500. 

8 ‘‘(2) QUALIFIED YOUNG SAVER.—For purposes 

9 of this subsection, the term ‘qualified young saver’ 

10 means any eligible individual— 

11 ‘‘(A) who elects the application of this sub12 section for the taxable year, 

13 ‘‘(B) who has not attained the age of 31 

14 before the end of the taxable year, and 

15 ‘‘(C) whose aggregate qualified retirement 

16 savings contributions for the taxable year are 

17 not less than an amount equal to 1 percent of 

18 the compensation includible in the individual’s 

19 gross income for such taxable year. 

20 ‘‘(3) LIMITATION BASED ON MODIFIED AD21 JUSTED GROSS INCOME.— 

22 ‘‘(A) IN GENERAL.—The credit which 

23 would (but for this paragraph) be determined 

24 under subsection (h) for the taxable year shall 


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1 be reduced (but not below zero) by the amount 

2 determined under subparagraph (B). 

3 ‘‘(B) AMOUNT OF REDUCTION.—The 

4 amount determined under this paragraph is the 

5 amount which bears the same ratio to the 

6 amount which would be so taken into account 

7 as— 

8 ‘‘(i) the excess of— 

9 ‘‘(I) the taxpayer’s adjusted 

10 gross income for such taxable year, 

11 over 

12 ‘‘(II) $50,000 ($100,000 in the 

13 case of a joint return), bears to 

14 ‘‘(ii) $20,000 ($40,000 in the case of 

15 a joint return). 

16 ‘‘(4) INFLATION ADJUSTMENT.— 

17 ‘‘(A) IN GENERAL.—In the case of a tax18 able year beginning after 2010, each of the dol19 lar amounts in paragraph (3) shall be increased 

20 by an amount 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 2009’ for ‘calendar year 1992’ in sub2 paragraph (B) thereof. 

3 ‘‘(B) ROUNDING.—If any amount as ad4 justed under subparagraph (A) is not a multiple 

5 of $500, such amount shall be rounded to the 

6 next lowest multiple of $500.’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to taxable years beginning after 

9 December 31, 2009. 

Æ 


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