I 
116TH CONGRESS 
2D SESSION 
H. R. 7418 
To amend the Internal Revenue Code of 1986 to provide matching payments 
for retirement savings contributions by certain individuals. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 30, 2020 
Ms. JUDY CHU of California (for herself, Mr. PANETTA, and Ms. SEWELL of 
Alabama) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
matching payments for retirement savings contributions 
by certain individuals. 
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 ‘‘Encouraging Ameri-
cans to Save Act’’. 
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SEC. 2. MATCHING PAYMENTS FOR ELECTIVE DEFERRAL 
AND IRA CONTRIBUTIONS BY CERTAIN INDI-
VIDUALS. 
(a) 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. SAVER’S MATCH. 
‘‘(a) IN GENERAL.— 
‘‘(1) ALLOWANCE OF CREDIT.—Any eligible in-
dividual who makes qualified retirement savings con-
tributions for the taxable year shall be allowed a 
credit for such taxable year in an amount equal to 
the applicable percentage of so much of the qualified 
retirement savings contributions made by such eligi-
ble individual for the taxable year as does not exceed 
$3,000. 
‘‘(2) PAYMENT OF CREDIT.—The credit under 
this section shall be paid by the Secretary as a con-
tribution (as soon as practicable after the eligible in-
dividual has filed a tax return for the taxable year) 
to the applicable retirement savings vehicle of an eli-
gible individual. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the applicable percentage is 50 percent. 
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‘‘(2) PHASEOUT.—The percentage under para-
graph (1) shall be reduced (but not below zero) by 
the number of percentage points which bears the 
same ratio to 50 percentage points as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s modified adjusted 
gross income for such taxable year, over 
‘‘(ii) the applicable dollar amount, 
bears to 
‘‘(B) the phaseout range. 
If any reduction determined under this paragraph is 
not a whole percentage point, such reduction shall be 
rounded to the next lowest whole percentage point. 
‘‘(3) APPLICABLE DOLLAR AMOUNT; PHASEOUT 
RANGE.— 
‘‘(A) JOINT
RETURNS.—Except as pro-
vided in subparagraph (B)— 
‘‘(i) the applicable dollar amount is 
$80,000, and 
‘‘(ii) the phaseout range is $20,000. 
‘‘(B) OTHER RETURNS.—In the case of— 
‘‘(i) a head of a household (as defined 
in section 2(b)), the applicable dollar 
amount and the phaseout range shall be 3⁄4 
of the amounts applicable under subpara-
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graph (A) (as adjusted under subsection 
(g)), and 
‘‘(ii) any taxpayer who is not filing a 
joint return and who is not a head of a 
household (as so defined), the applicable 
dollar amount and the phaseout range 
shall be 1⁄2 of the amounts applicable 
under subparagraph (A) (as so adjusted). 
‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this 
section— 
‘‘(1) IN
GENERAL.—The term ‘eligible indi-
vidual’ means any individual if such individual has 
attained the age of 18 as of the close of the taxable 
year. 
‘‘(2) DEPENDENTS AND FULL-TIME STUDENTS 
NOT ELIGIBLE.—The term ‘eligible individual’ shall 
not include— 
‘‘(A) any individual with respect to whom 
a deduction under section 151 is allowed to an-
other taxpayer for a taxable year beginning in 
the calendar year in which such individual’s 
taxable year begins, and 
‘‘(B) any individual who is a student (as 
defined in section 152(f)(2)). 
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‘‘(d) QUALIFIED RETIREMENT SAVINGS CONTRIBU-
TIONS.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified retire-
ment savings contributions’ means, with respect to 
any taxable year, the sum of— 
‘‘(A) the amount of the qualified retire-
ment contributions (as defined in section 
219(e)) made by the eligible individual, 
‘‘(B) the amount of— 
‘‘(i) any elective deferrals (as defined 
in section 402(g)(3)) of such individual, 
and 
‘‘(ii) any elective deferral of com-
pensation by such individual under an eli-
gible deferred compensation plan (as de-
fined in section 457(b)) of an eligible em-
ployer described in section 457(e)(1)(A), 
and 
‘‘(C) the amount of voluntary employee 
contributions by such individual to any qualified 
retirement plan (as defined in section 4974(c)). 
Such term shall not include any amount attributable 
to a payment under subsection (a). 
‘‘(2) REDUCTION
FOR
CERTAIN
DISTRIBU-
TIONS.— 
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‘‘(ii) any distribution to which section 
408(d)(3) or 408A(d)(3) applies, and 
‘‘(iii) any portion of a distribution if 
such portion is transferred or paid in a 
rollover contribution (as defined in section 
402(c), 403(a)(4), 403(b)(8), 408A(e), or 
457(e)(16)) to an account or plan to which 
qualified retirement contributions can be 
made. 
‘‘(D) TREATMENT OF DISTRIBUTIONS RE-
CEIVED BY SPOUSE OF INDIVIDUAL.—For pur-
poses of determining distributions received by 
an individual under subparagraph (A) for any 
taxable year, any distribution received by the 
spouse of such individual shall be treated as re-
ceived by such individual if such individual and 
spouse file a joint return for such taxable year 
and for the taxable year during which the 
spouse receives the distribution. 
‘‘(e) APPLICABLE
RETIREMENT
SAVINGS
VEHI-
CLE.— 
‘‘(1) IN GENERAL.—The term ‘applicable retire-
ment savings vehicle’ means— 
‘‘(A) an account or plan elected by the eli-
gible individual under paragraph (2), or 
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‘‘(B) if no such election is made or the 
Secretary is not able to make a contribution 
into the account or plan selected by the eligible 
individual, a MyRA established for the benefit 
of the eligible individual. 
For purposes of subparagraph (B), if no MyRA has 
previously been established for the benefit of the in-
dividual, the Secretary shall establish such an ac-
count for such individual for purposes of contribu-
tions under this section. 
‘‘(2) OTHER RETIREMENT VEHICLES.—An eligi-
ble individual may elect to have the amount deter-
mined under subsection (a) contributed to an ac-
count or plan which— 
‘‘(A) is a Roth IRA or a designated Roth 
account (within the meaning of section 402A) 
of an applicable retirement plan (as defined in 
section 402A(e)(1)), 
‘‘(B) is for the benefit of the eligible indi-
vidual, 
‘‘(C) accepts contributions made under this 
section, and 
‘‘(D) is designated by such individual (in 
such form and manner as the Secretary may 
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provide) on the return of tax for the taxable 
year. 
‘‘(3) MYRA.—For purposes of paragraph (1), 
the term ‘MyRA’ means a Roth IRA which is estab-
lished— 
‘‘(A) under the MyRA program established 
under section 3 of the Encouraging Americans 
to Save Act, and 
‘‘(B) by the individual for whose benefit 
the Roth IRA was created or by the Secretary 
on behalf of such individual. 
‘‘(f) OTHER DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this section, the term ‘modified ad-
justed gross income’ means adjusted gross income— 
‘‘(A) determined without regard to sections 
911, 931, and 933, and 
‘‘(B) determined without regard to any ex-
clusion or deduction allowed for any qualified 
retirement savings contribution made during 
the taxable year. 
‘‘(2) TREATMENT OF CONTRIBUTIONS.—In the 
case of any contribution under subsection (a)(2)— 
‘‘(A) except as otherwise provided in this 
section or by the Secretary under regulations, 
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such contribution shall be treated in the same 
manner as a contribution made by the indi-
vidual on whose behalf such contribution was 
made, 
‘‘(B) such contribution shall not be treated 
as income to the taxpayer, and 
‘‘(C) such contribution shall not be taken 
into account with respect to any applicable limi-
tation 
under 
sections 
402(g)(1), 
403(b), 
408(a)(1), 408(b)(2)(B), 408A(c)(2), 414(v)(2), 
415(c), or 457(b)(2). 
‘‘(3) TREATMENT OF QUALIFIED PLANS, ETC.— 
A plan or arrangement to which a contribution is 
made under this section shall not be treated as vio-
lating any requirement under section 401, 403, 408, 
or 457 solely by reason of accepting such contribu-
tion. 
‘‘(4) ERRONEOUS CREDITS.—If any contribu-
tion is erroneously paid under subsection (a)(2), the 
amount of such erroneous payment shall be treated 
as an underpayment of tax. 
‘‘(g) INFLATION ADJUSTMENTS.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning in a calendar year after 2021, each 
of the dollar amounts in subsections (a)(2) and 
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(b)(3)(A)(i) shall be increased by an amount equal 
to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2020’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
‘‘(2) ROUNDING.—Any increase determined 
under paragraph (1) shall be rounded to the nearest 
multiple of— 
‘‘(A) $100 in the case of an adjustment of 
the amount in subsection (a)(2), and 
‘‘(B) $1,000 in the case of an adjustment 
of the amount in subsection (b)(3)(A)(i).’’. 
(b) PAYMENT AUTHORITY.—Section 1324(b)(2) of 
title 31, United States Code, is amended by striking 
‘‘6431’’ and inserting ‘‘6433’’. 
(c) DEFICIENCIES.—Section 6211(b)(4) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘and 
6428’’ and inserting ‘‘6428, and 6433’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 25B of the Internal Revenue Code 
of 1986 is amended to read as follows: 
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‘‘SEC. 25B. SAVER’S CREDIT. 
‘‘For payment of credit related to qualified retire-
ment savings contributions, see section 6433.’’. 
(2) The table of sections for subchapter B of 
chapter 65 of such Code is amended by adding after 
the item relating to section 6430 the following new 
item: 
‘‘Sec. 6433. Saver’s match.’’. 
(3) 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 
and inserting the following new item: 
‘‘Sec. 25B. Saver’s credit.’’ 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 3. ESTABLISHMENT OF MYRA PROGRAM. 
(a) IN GENERAL.—The Secretary of the Treasury (or 
the Secretary’s delegate) shall, not later than December 
31, 2020, establish a permanent program, to be known 
as the ‘‘MyRA Program’’, which meets the requirements 
of this section to establish and maintain a Roth IRA on 
behalf of individuals. 
(b) PROGRAM SPECIFICATIONS.— 
(1) IN GENERAL.— 
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(A) ROTH IRAS.—The MyRA Program es-
tablished under this section shall— 
(i) permit an individual to establish a 
Roth IRA which satisfies the requirements 
of section 408A of the Internal Revenue 
Code of 1986 on behalf of the individual; 
(ii) permit an employer to establish 
such a Roth IRA on behalf of 1 or more 
employees of such employer; 
(iii) require the assets of each Roth 
IRA established under the program to be 
held by the designated Roth IRA custo-
dian; 
(iv) permit contributions to be made 
periodically to such Roth IRAs by direct 
deposit or other electronic means and by 
methods that provide access for the 
unbanked; 
(v) permit distributions and rollovers 
from such Roth IRAs upon request of the 
account owner; 
(vi) include procedures to consolidate 
multiple accounts established for the same 
individual; and 
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(vii) ensure that such Roth IRAs are 
invested solely in retirement savings bonds 
issued by the Department of the Treasury 
for the purpose of the MyRA Program. 
(B) REGULATIONS, ETC.—The Secretary 
of the Treasury shall have authority to promul-
gate such regulations, rules, and other guidance 
as are necessary to implement the MyRA pro-
gram, and are consistent with this section, as 
well as coordination rules permitting Roth IRAs 
to be established under the MyRA program in 
connection with State and local laws that enroll 
residents in Roth IRAs. 
(2) NO FEES.—No fees shall be assessed on 
participants in the MyRA Program. 
(3) LIMITATIONS.— 
(A) CONTRIBUTION
MINIMUM.—The Sec-
retary of the Treasury may establish minimum 
amounts for initial and additional contributions 
to a Roth IRA under the MyRA Program, not 
to exceed $5. 
(B) ROLLOVER CONTRIBUTIONS NOT PER-
MITTED.—No rollover contribution shall be ac-
cepted to a Roth IRA under the MyRA pro-
gram. 
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(C) ACCOUNT
MAXIMUM.—No contribu-
tions shall be credited to a Roth IRA under the 
MyRA Program after the account balance of 
such Roth IRA reaches $15,000. 
(D) LIMITATION
ON
PARTICIPATION.— 
Within a reasonable amount of time after the 
earlier of— 
(i) the date the account balance of a 
Roth IRA under the MyRA Program 
reaches $15,000; or 
(ii) the earlier of— 
(I) the date that the participant 
has been a participant in the MyRA 
Program for 30 years; or 
(II) the date that the participant 
reaches age 591⁄2; 
the designated Roth IRA custodian shall pro-
vide notice to the participant that no further 
contributions will be accepted and that the par-
ticipant may elect to have the account balance 
rolled over to another Roth IRA according to 
the rules relating to rollovers and conversions of 
Roth IRAs under the Internal Revenue Code of 
1986. 
(E) ADJUSTMENT FOR INFLATION.— 
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(i) IN GENERAL.—In the case of any 
calendar year after 2020, the $15,000 
amount in subparagraphs (C) and (D) and 
subsection (c)(3)(B) shall be increased by 
an amount equal to— 
(I) such dollar amount, multi-
plied by 
(II) the cost-of-living adjustment 
determined under section 1(f)(3) of 
the Internal Revenue Code of 1986 
for the calendar year, determined by 
substituting ‘‘calendar year 2020’’ for 
‘‘calendar year 2016’’ in subpara-
graph (A)(ii) thereof. 
(ii) ROUNDING.—If any increase de-
termined under clause (i) is not a multiple 
of $50, such increase shall be rounded to 
the next lowest multiple of $50. 
(4) DESIGNATED ROTH IRA CUSTODIAN.—For 
purposes of this section, the designated Roth IRA 
custodian is the person designated by the Secretary 
of the Treasury to act as custodian of the Roth 
IRAs established on behalf of participants in the re-
tirement savings program of such Department. 
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(c) RETIREMENT SAVINGS BONDS.—For purposes of 
this section— 
(1) IN GENERAL.—The term ‘‘retirement sav-
ings bond’’ means an interest-bearing electronic 
United States savings bond issued to the designated 
Roth IRA custodian which is available only to par-
ticipants in the MyRA Program. 
(2) INTEREST RATE.—Bonds issued under the 
MyRA program shall earn interest at a rate equal to 
the greater of (determined on the issue date)— 
(A) the rate earned by the Government Se-
curities Investment Fund established under sec-
tion 8438(b)(1) of title 5, United States Code; 
or 
(B) a Series I United States savings bond. 
(3) BONDS TO BE CREDITED TO SINGLE AC-
COUNT.—Each retirement savings bond issued to the 
designated Roth IRA custodian shall be credited to 
a single Roth IRA established through the MyRA 
Program on behalf of a participant. 
(4) REISSUE IN CASE OF CHANGE IN CUSTO-
DIAN.—If a successor designated Roth IRA custo-
dian is designated under subsection (b)(4), the re-
tirement savings bonds issued to the predecessor 
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designated Roth IRA custodian shall be reissued to 
such successor. 
(d) ROTH IRA.—For purposes of this section, the 
term ‘‘Roth IRA’’ has the meaning given such term by 
section 408A(b) of the Internal Revenue Code of 1986. 
(e) SECRETARY.—For purposes of this section, the 
term ‘‘Secretary’’ means the Secretary of the Treasury (or 
the Secretary’s delegate). 
SEC. 4. PROMOTION AND GUIDANCE. 
(a) PROMOTION.— 
(1) IN
GENERAL.—The Secretary shall take 
such steps as the Secretary determines are necessary 
and appropriate to increase public awareness of the 
benefits provided under section 6433 of the Internal 
Revenue Code of 1986 and the MyRA Program es-
tablished under section 3 of this Act. 
(2) REPORT TO CONGRESS.— 
(A) IN GENERAL.—Not later than 90 days 
after the date of the enactment of this Act, the 
Secretary shall provide a report to Congress to 
summarize the anticipated promotion efforts of 
the Treasury with respect to paragraph (1). 
(B) CONTENTS.—The report under sub-
paragraph (A) shall include— 
(i) a description of plans for— 
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(I) the development and distribu-
tion of digital and print materials, in-
cluding the distribution of such mate-
rials to States for participants in 
State-sponsored 
retirement 
savings 
plans, and 
(II) the translation of such mate-
rials into the five most commonly spo-
ken languages in the United States 
after English (as determined by 
American Community Survey data), 
and 
(ii) such other information as the Sec-
retary determines necessary. 
(b) GUIDANCE.—Not later than December 31, 2020, 
the Secretary shall issue guidance on the implementation 
and administration of the amendments made by section 
2 of this Act. 
(c) SECRETARY.—For purposes of this section, the 
term ‘‘Secretary’’ means the Secretary of the Treasury (or 
the Secretary’s delegate). 
Æ 
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