I 
110TH CONGRESS 
1ST SESSION H. R. 2724 
To amend the Internal Revenue Code of 1986 to modify the saver’s credit. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 14, 2007 
Mr. EMANUEL (for himself and Mr. RAMSTAD) 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 modify 
the saver’s credit. 
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 ‘‘Retirement Savings 
for Working Americans Act’’. 
SEC. 2. MODIFICATION OF SAVER’S CREDIT. 
(a) FULL CREDIT AMOUNT MADE AS PAYMENT INTO 
RETIREMENT ACCOUNTS.—The Internal Revenue Code of 
1986 is amended— 
(1) by redesignating section 25B as section 
30D, and by moving section 30D (as so redesig-
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nated) from subpart A of part IV of subchapter A 
of chapter 1 (relating to nonrefundable personal 
credits) to immediately after section 30C in subpart 
B of such part (relating to other credits), and 
(2) by amending subsection (g) of section 30D 
(as so redesignated) to read as follows: 
‘‘(g) CREDIT PAYABLE ONLY INTO RETIREMENT AC-
COUNT.— 
‘‘(1) IN
GENERAL.—The Secretary of the 
Treasury shall pay into the designated retirement 
account of the taxpayer an amount equal to the 
credit determined under subsection (a) for the tax-
able year. 
‘‘(2) DESIGNATED
RETIREMENT
ACCOUNT.— 
For purposes of this subsection, the term ‘des-
ignated retirement account’ means any account or 
plan— 
‘‘(A) with respect to which qualified retire-
ment savings contributions of the taxpayer are 
taken into account under subsection (a) for the 
taxable year, 
‘‘(B) which is designated by the taxpayer 
(in such form and manner as the Secretary may 
provide) on the return of tax for the taxable 
year, and 
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‘‘(C) which, under the terms of the account 
or plan, accepts the payment described in para-
graph (1). 
‘‘(3) NO DOUBLE BENEFIT.—The credit deter-
mined under subsection (a) shall not be allowed as 
a credit against any tax imposed by this title.’’. 
(b) EXPANSION OF PHASEOUT RANGES.—Subsection 
(b) of section 30D of such Code, as redesignated by this 
section, is amended to read as follows: 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the applicable percentage is 50 percent. 
‘‘(2) PHASEOUT.—With respect to any taxpayer 
for any taxable year, the applicable percentage shall 
be reduced (but not below zero) by the percentage 
which bears the same ratio to 50 percent as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s adjusted gross in-
come for such taxable year, over 
‘‘(ii) the applicable dollar amount, 
bears to 
‘‘(B) the phaseout range. 
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If any reduction under this paragraph is not a mul-
tiple of 1 percent, such reduction shall be rounded 
to the nearest multiple of 1 percent. 
‘‘(3) APPLICABLE DOLLAR AMOUNT; PHASEOUT 
RANGE.—The applicable dollar amount and the 
phaseout range shall be determined in accordance 
with the following table: 
In the case of: 
The applicable dollar 
amount is: 
The phaseout 
range is: 
A joint return .....................................
$60,000 
$10,000 
A head of a household ........................
$45,000 
$7,500 
Any other case ...................................
$30,000 
$5,000’’. 
(c) TAX-PREFERRED EDUCATION SAVINGS TREATED 
AS RETIREMENT SAVINGS.—Subsection (d) of section 
30D of such Code, as redesignated by this section, is 
amended by adding at the end the following new para-
graph: 
‘‘(3) EDUCATION SAVINGS ACCOUNT CONTRIBU-
TIONS
TREATED
AS
RETIREMENT
SAVINGS.— 
Amounts contributed to qualified tuition programs 
under section 529 and amounts contributed to 
Coverdell education savings accounts under section 
530 shall be treated as qualified retirement savings 
contributions (subject to any reduction under para-
graph (2)).’’. 
(d) LIMITATION ON RETIREMENT CONTRIBUTIONS 
TAKEN INTO ACCOUNT INDEXED FOR INFLATION.—Sec-
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tion 30D of such Code, as redesignated by this section, 
is amended by adding at the end the following new sub-
section: 
‘‘(h) INFLATION ADJUSTMENT.—In the case of any 
taxable year beginning in a calendar year after 2007, the 
dollar amounts in subsection (a) shall be increased by an 
amount equal to— 
‘‘(1) such dollar amount, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year in which 
the taxable year begins, determined by substituting 
‘2006’ for ‘1992’ in subparagraph (B) thereof. 
Any increase determined under the preceding sentence 
shall be rounded to the nearest multiple of $100.’’. 
(e) CONFORMING AMENDMENTS.— 
(1) Section 24(b)(3)(B) of such Code is amend-
ed by striking ‘‘and 25B’’. 
(2) Section 25(e)(1)(C) of such Code is amend-
ed by striking ‘‘25B,’’. 
(3) Sections 26(a)(1), 904(i), and 1400C(d) of 
such Code are each amended by striking ‘‘24, and 
25B’’ and inserting ‘‘and 24’’. 
(4) The heading of section 30D of such Code, 
as redesignated by this section, is amended to read 
as follows: 
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‘‘SEC. 30D. SAVER’S CREDIT.’’. 
(5) Section 30D(a) of such Code, as so redesig-
nated, is amended by striking ‘‘there shall be al-
lowed as a credit against the tax imposed by this 
subtitle for the taxable year’’ and inserting ‘‘the 
credit determined under this subsection for the tax-
able year is’’. 
(6) The table of sections for subpart A of part 
IV of subchapter A of chapter 1 of such Code is 
amended by striking the item relating to section 
25B. 
(7) The table of sections for subpart B of such 
part is amended by adding at the end the following 
new item: 
‘‘Sec. 30D. Saver’s credit.’’. 
(8) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘or 30D’’ after 
‘‘section 35’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
Æ 
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