I 
114TH CONGRESS 
1ST SESSION H. R. 1125 
To amend the Internal Revenue Code of 1986 to provide for tax preferred 
savings accounts for individuals under age 18, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 26, 2015 
Mr. HANNA (for himself and Mr. KIND) 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 
for tax preferred savings accounts for individuals under 
age 18, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Start Saving Sooner 
Act of 2015’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Studies indicate that children as young as 
3 years old are able to grasp financial concepts and 
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that basic financial habits are largely formulated by 
age 7. 
(2) Research shows that children born to low- 
income parents who are good financial savers are 
more likely to move up the economic ladder than 
children from low-income households that do not 
save. According to a 2011 study controlled for in-
come and demographic factors, youth who own fi-
nancial accounts are 7 times more likely to attend 
college. 
(3) If tax-advantaged retirement accounts such 
as Roth IRAs could be opened for children between 
the ages of zero and 18, these individuals are likely 
to acquire substantially more tax-free assets by re-
tirement age than their peers. 
(4) Children who possess retirement accounts 
from a young age will benefit from longer exposure 
to compound interest and can be expected to attain 
higher levels of financial literacy, college graduation 
and retirement security in adulthood. 
(5) Greater private retirement savings for 
Americans of all ages will increase personal financial 
security and responsibility, reducing the likelihood 
that seniors will need to rely solely on Social Secu-
rity for their retirement income. 
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(6) Federal policy should better enable parents, 
guardians and families of all income levels to encour-
age youth saving and investment for retirement at 
an earlier age. 
(7) Federal policy should help create retirement 
savings incentives for low-income Americans because 
studies show that low-income Americans will save 
more for retirement if there are incentives and 
structures in place to help them do so. A refundable 
incentive like the Saver’s Credit would reach 50 mil-
lion low-income households—nearly 10 times the 
number a non-refundable credit reaches. 
SEC. 3. YOUNG SAVERS ACCOUNT. 
(a) ESTABLISHMENT OF ACCOUNTS.— 
(1) IN GENERAL.—Section 408A of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(g) YOUNG SAVERS ACCOUNT.— 
‘‘(1) IN GENERAL.—Except as provided in this 
subsection, a young savers account shall be treated 
in the same manner as a Roth IRA. 
‘‘(2) YOUNG SAVERS ACCOUNT.—For purposes 
of this subsection, the term ‘young savers account’ 
means, with respect to any taxable year, a Roth IRA 
which is maintained on behalf of an individual who 
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has not attained age 18 before the close of the tax-
able year and which is designated (in such manner 
as the Secretary may prescribe) at the time of estab-
lishment as a young savers account. 
‘‘(3) CONTRIBUTION
LIMITS.—In the case of 
any contributions for any taxable year to 1 or more 
young savers accounts maintained on behalf of an 
individual, each of the following contribution limits 
for the taxable year shall be increased as follows: 
‘‘(A) The contribution limit applicable to 
the individual under subsection (c)(2) shall be 
increased by the aggregate amount of qualified 
young saver contributions to such accounts for 
the taxable year. 
‘‘(B) The contribution limits applicable to 
the young savers accounts under subsection 
(a)(1) or (b)(2)(B) of section 408, whichever is 
applicable, shall be increased by the deductible 
amount in effect under section 219(b)(5) for 
such taxable year (determined without regard to 
subparagraph (B) thereof). 
‘‘(4) QUALIFIED
YOUNG
SAVER
CONTRIBU-
TIONS.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
young saver contribution’ means a contribution 
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is amended by adding at the end the following new 
item: 
‘‘Sec. 6433. Young savers account refund payment.’’. 
(d) YOUNG SAVERS ACCOUNT INFORMATION IN-
CLUDED WITH APPLICATION
FOR SOCIAL SECURITY 
CARD.—The Commissioner of Social Security, in consulta-
tion with the Secretary of the Treasury, shall include with 
materials relating to the application for a social security 
card information describing young savers accounts (as de-
fined in section 408A(g)(2) of the Internal Revenue Code 
of 1986) and related tax benefits. 
(e) ACCOUNT FUNDS DISREGARDED FOR PURPOSES 
OF ALL MEANS TESTED FEDERAL PROGRAMS.—Notwith-
standing any other provision of Federal law, assets accu-
mulated in young savers accounts (within the meaning of 
section 408A(g) of the Internal Revenue Code of 1986) 
shall not be taken into account in determining any individ-
ual’s or household’s financial eligibility for, or amount of, 
any benefit or service, paid for in whole or in part with 
Federal funds, including student financial aid. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
Æ 
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