(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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by an individual (with respect to whom a young 
savers account is not maintained during the 
taxable year) to a young savers account main-
tained on behalf of another individual. 
‘‘(B) LIMITATIONS.— 
‘‘(i) LIMIT ON ACCOUNTS WITH RE-
SPECT
TO
INDIVIDUAL.—The aggregate 
amount of contributions which may be 
made for any taxable year to all young sav-
ers accounts maintained on behalf of an in-
dividual shall not exceed the deductible 
amount in effect for the taxable year under 
section 219(b)(5) (determined without re-
gard to subparagraph (B) thereof). 
‘‘(ii) LIMIT ON CONTRIBUTORS.—The 
aggregate amount of qualified young saver 
contributions an individual may make for 
any taxable year to all young savers ac-
counts shall not exceed the deductible 
amount in effect for the taxable year under 
section 219(b)(5) (determined without re-
gard to subparagraph (B) thereof), re-
duced by any contributions made by or on 
behalf of the individual to any Roth IRA 
maintained on behalf of the individual.’’. 
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(b) ELIGIBLE FOR SAVERS CREDIT.—Paragraph (1) 
of section 25B(d) of such Code is amended by striking 
‘‘and’’ at the end of subparagraph (B)(ii), by striking the 
period at the end of subparagraph (C) and inserting ‘‘, 
and’’, and by adding at the end the following new subpara-
graph: 
‘‘(D) the amount of any contribution to a 
young savers account.’’. 
(c) REFUND PAYABLE
TO YOUNG SAVERS AC-
COUNT.— 
(1) IN GENERAL.—Subchapter B of chapter 65 
of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new section: 
‘‘SEC. 6433. YOUNG SAVERS ACCOUNT REFUND PAYMENT. 
‘‘In the case of any overpayment (or portion thereof) 
which is attributable to a credit allowed to an individual 
under section 25B by reason of a contribution to a young 
savers account, the Secretary shall pay the amount of such 
overpayment (or such portion) into the young savers ac-
count to which such contribution was made. The Secretary 
shall prescribe such regulations as may be necessary to 
carry out the purposes of this section.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter B of chapter 65 of such Code 
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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, 2013. 
Æ 
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