Helping Young Americans Save for Retirement Act

To amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 with respect to minimum participation standards for pension plans and qualified trusts. 1. Short title This Act may be cited as the Helping Young Americans Save for Retirement Act 2. Eligibility at age 18 under certain conditions (a) ERISA (1) Age 18 Subparagraphs (A) and (B) of section 202(c)(1) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1052(c)(1) (A) the period determined under subsection (a)(1) determined— (i) without regard to subparagraph (B)(i) thereof; and (ii) by substituting 18 21 (B) the first 24-month period— (i) consisting of 2 consecutive 12-month periods during each of which the employee has at least 500 hours of service; and (ii) by the close of which the employee has met the requirement of subsection (a)(1)(A)(i) (without regard to subparagraph (A)(ii) of this paragraph). . (2) Conforming amendments Section 202(c) of such Act ( 29 U.S.C. 1052(c) (A) in the subsection heading— (i) by striking Special rule Special rules (ii) by adding and certain younger employees employees (B) in paragraph (3)— (i) by striking Paragraph (1)(B) Paragraph (1) (ii) by striking section 401(k)(2)(D)(ii) section 401(k)(2)(D) (3) Opinion of independent qualified public accountant Section 104(a)(2) of such Act ( 29 U.S.C. 1024(a)(2) (C) For purposes of this paragraph and the last sentence of section 103(a)(3)(A), with respect to a pension plan in which at least one employee participates solely by reason of section 202(c)(1)(A), no employee participating in such plan solely by reason of section 202(c)(1)(A) shall be treated as a participant until the date that is 5 years after the date on which the first such employee first becomes a participant in such plan. . (b) Internal Revenue Code of 1986 (1) Age 18 Clauses (i) and (ii) of section 401(k)(2)(D) (i) the period permitted under section 410(a)(1), determined— (I) without regard to subparagraph (B)(i) thereof, and (II) by substituting 18 21 (ii) subject to the provisions of paragraph (15), the first of 2 consecutive 12-month periods during each of which the employee has at least 500 hours of service, provided that the employee has satisfied the requirements of section 410(a)(1)(A)(i) (without regard to clause (i)(II) of this subparagraph). . (2) Conforming amendments The Internal Revenue Code of 1986 is amended— (A) in section 401(k)(15)— (i) in the paragraph heading, by adding and certain younger workers workers (ii) in subparagraph (B)— (I) in clauses (i) and (ii), by striking (2)(D)(ii) (2)(D) (II) in clause (i), by striking 202(c)(1)(B) 202(c)(1) (III) in clause (iv), striking paragraph (2)(D)(ii) clauses (i)(II) and (ii) of paragraph (2)(D) (B) in section 403(b)(12)— (i) in subparagraph (A), by striking section 202(c) section 202(c)(1)(B) (ii) in subparagraph (D)— (I) in the subparagraph heading, by inserting and certain younger employees employees (II) in clause (i), by striking 202(c)(1)(B) 202(c)(1) (c) Effective date The amendments made by this section shall apply to plan years beginning after December 31, 2025.

Summary: Helping Young Americans Save for Retirement Act This bill lowers the age for participation in tax-exempt pension plans from 21 to 18.