I 
115TH CONGRESS 
2D SESSION 
H. R. 7349 
To provide for each American the opportunity to provide for his or her 
retirement through a S.A.F.E. account, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 19, 2018 
Mr. SESSIONS introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Over-
sight and Government Reform, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To provide for each American the opportunity to provide 
for his or her retirement through a S.A.F.E. account, 
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 AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Savings Account for Every American Act of 2018’’. 
(b) TABLE OF CONTENTS.—The table of contents is 
as follows: 
Sec. 1. Short title and table of contents. 
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TITLE I—PERSONAL RETIREMENT PROGRAM 
Sec. 101. Definitions. 
Sec. 102. S.A.F.E. account payroll deduction programs. 
Sec. 103. Designation of S.A.F.E. accounts. 
Sec. 104. Self-employed individuals. 
Sec. 105. Elective participation. 
Sec. 106. Penalties. 
Sec. 107. Federal civilian and military personnel. 
TITLE II—TAX-EXEMPT S.A.F.E. ACCOUNTS 
Sec. 201. S.A.F.E. accounts. 
Sec. 202. Effective date. 
TITLE III—CONFORMING AMENDMENTS TO THE SOCIAL 
SECURITY ACT AND THE INTERNAL REVENUE CODE OF 1986 
Sec. 301. Reductions in and exemptions from FICA taxes and SECA taxes with 
respect to eligible individuals. 
Sec. 302. Exclusion of eligible individuals from old-age, survivors, and disability 
insurance coverage. 
Sec. 303. Information provided in social security account statements. 
TITLE I—PERSONAL 
RETIREMENT PROGRAM 
SEC. 101. DEFINITIONS. 
For purposes of this title— 
(1) ACCOUNT
HOLDER.—The term ‘‘account 
holder’’ means, with respect to any S.A.F.E. ac-
count, the individual for whose benefit such account 
is maintained. 
(2) BUSINESS DAY.—The term ‘‘business day’’ 
means any day other than a Saturday, Sunday, or 
legal holiday in the area involved. 
(3) COVERED EMPLOYER.—The term ‘‘covered 
employer’’ means, for any calendar year, a person 
for whom an eligible individual is engaged in em-
ployment during the year. 
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(4) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible 
individual’’ means any individual with respect to 
whom there is in effect an election under section 
105(a). 
(5) EMPLOYMENT.—The term ‘‘employment’’ 
has the meaning provided in section 210 of the So-
cial Security Act. 
(6) PRESCRIBED EMPLOYEE CONTRIBUTION.— 
The term ‘‘prescribed employee contribution’’ means, 
with respect to any eligible individual who is en-
gaged in employment for a covered employer during 
any calendar year, an amount equal to 6.2 percent 
of the wages received by such employee with respect 
to such employment. The Commissioner of Social 
Security shall provide by regulation for exclusion of 
remuneration paid to any employee during any cal-
endar year from the total amount of remuneration 
treated under this paragraph as ‘‘wages’’ paid to 
such employee during such calendar year to the ex-
tent that such total amount exceeds the contribution 
and benefit base for such calendar year under sec-
tion 230 of the Social Security Act. 
(7) 
PRESCRIBED
SELF-EMPLOYMENT
CON-
TRIBUTION.—The term ‘‘prescribed self-employment 
contribution’’ means, with respect to the self-employ-
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ment income of an eligible individual for any cal-
endar year, the excess (if any) of— 
(A) 6.2 percent of the amount of such self- 
employment income for such calendar year, to 
the extent that such self-employment income 
does not exceed, for such calendar year, the 
contribution and benefit base for such calendar 
year under section 230 of the Social Security 
Act, over 
(B) the total of all prescribed employee 
contributions and prescribed employer contribu-
tions payable with respect to such eligible indi-
vidual for such calendar year. 
Effective with the commencement of the 16th cal-
endar year for which the eligible individual’s election 
under section 105 is in effect, ‘‘12.4 percent’’ shall 
be substituted for ‘‘6.2 percent’’ in subparagraph 
(A). 
(8) PRESCRIBED EMPLOYER CONTRIBUTION.— 
The term ‘‘prescribed employer contribution’’ means, 
with respect to any eligible individual who is en-
gaged in employment for a covered employer during 
any calendar year, an amount equal to 6.2 percent 
of the wages received by such employee with respect 
to such employment, to the extent that such wages 
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do not exceed, for such calendar year, the contribu-
tion and benefit base for such calendar year under 
section 230 of the Social Security Act. 
(9) S.A.F.E. ACCOUNT.—The term ‘‘S.A.F.E. 
account’’ has the meaning provided in section 222(c) 
of the Internal Revenue Code of 1986. 
(10) SELF-EMPLOYMENT
INCOME.—The term 
‘‘self-employment income’’ has the meaning provided 
in section 211(b) of the Social Security Act. 
(11) WAGES.—The term ‘‘wages’’ has the 
meaning provided in section 209 of the Social Secu-
rity Act. 
SEC. 102. S.A.F.E. ACCOUNT PAYROLL DEDUCTION PRO-
GRAMS. 
(a) IN GENERAL.—Each person who is a covered em-
ployer for any calendar year shall have in effect through-
out such calendar year a S.A.F.E. account payroll deduc-
tion program for such person’s employees who are eligible 
individuals. 
(b) REQUIREMENTS.—For purposes of this Act, the 
term ‘‘S.A.F.E. account payroll deduction program’’ 
means a written program maintained by a covered em-
ployer if— 
(1) under such program, the prescribed em-
ployee contribution is deducted from the wages of 
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each employee who is an eligible individual and paid 
as a contribution on behalf of the employee to a 
S.A.F.E. account of such employee designated in ac-
cordance with section 103, 
(2) under such program, the covered em-
ployer— 
(A) makes timely payment of the amount 
so deducted as a contribution to the designated 
S.A.F.E. account, and 
(B) effective upon receipt from the eligible 
individual of certification (in accordance with 
regulations which shall be prescribed by the 
Commissioner of Social Security) of the com-
mencement of the 16th calendar year for which 
the eligible employee’s election under section 
105 has been in effect, makes timely payment, 
together with the amount so deducted, of the 
prescribed employer contribution with respect to 
the eligible individual, 
under regulations of the Commissioner of Social Se-
curity applying the same principles relating to the 
timeliness of payment as are applicable under chap-
ter 62 of the Internal Revenue Code of 1986 with 
respect to taxes under chapter 21 of such Code, and 
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(3) the employer receives no compensation for 
the cost of administering such program. 
(c) AMOUNTS OTHERWISE PAYABLE MAY BE ACCU-
MULATED BY EMPLOYER IN CERTAIN CASES.—If, under 
the terms of the governing instruments creating a 
S.A.F.E. account designated under section 103, contribu-
tions below a specified amount will not be accepted, the 
requirements of subsection (b)(2) shall be treated as met 
if amounts deducted from the wages of an employee who 
is an eligible individual, together with prescribed employer 
contributions (if any), are accumulated by the covered em-
ployer and paid to such account otherwise in accordance 
with subsection (b)(2) with reference to the first day on 
which the accumulated amount exceeds such specified 
amount. 
SEC. 103. DESIGNATION OF S.A.F.E. ACCOUNTS. 
(a) IN GENERAL.—Except as provided in subsection 
(b), a S.A.F.E. account to which contributions with re-
spect to any employee who is an eligible individual are re-
quired to be paid under section 102 shall be such an ac-
count designated by such employee to such employer not 
later than 10 business days after the date on which such 
employee becomes an employee of such employer. Any 
such designation shall be made in such form and manner 
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as may be prescribed in regulations of the Commissioner 
of Social Security. 
(b) DESIGNATION IN ABSENCE OF TIMELY DESIGNA-
TION BY EMPLOYEE.—In any case in which no timely des-
ignation of a S.A.F.E. account is made, the covered em-
ployer shall designate such account in accordance with 
regulations of the Commissioner of Social Security. 
(c) SUBSEQUENT SUBSTITUTION OF ACCOUNTS.— 
The Commissioner of Social Security shall provide by reg-
ulation for subsequent designation of a S.A.F.E. account 
by an account holder in lieu of an account previously des-
ignated by such account holder under this section. 
SEC. 104. SELF-EMPLOYED INDIVIDUALS. 
(a) IN GENERAL.—In the case of an eligible indi-
vidual who has self-employment income for any calendar 
year, such individual shall make timely payments to a 
S.A.F.E. account designated by such individual of the pre-
scribed self-employment contribution with respect to such 
individual for such calendar year in accordance with regu-
lations of the Commissioner of Social Security, applying 
the same principles relating to timeliness of payment as 
are applicable under chapter 62 of the Internal Revenue 
Code of 1986 with respect to taxes under chapter 2 of 
such Code. 
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(b) DESIGNATION OF ACCOUNT.—The designation of 
a S.A.F.E. account for payment of prescribed self-employ-
ment contributions shall be made in such form and man-
ner as may be prescribed in regulations of the Commis-
sioner of Social Security. 
(c) PERIODIC PAYMENT.—The Commissioner of So-
cial Security shall provide by regulation for periodic in-
stallment payments during the calendar year of prescribed 
self-employment contributions for each eligible individual, 
taking into account, as appropriate for each period, pre-
scribed employee contributions for such individual. 
SEC. 105. ELECTIVE PARTICIPATION. 
(a) ELECTION.—Any individual who has been as-
signed a social security account number under section 
205(c)(2)(B) of the Social Security Act and has been paid 
wages or has derived self-employment income may, on or 
after the first day of the first calendar year beginning 
after the date of enactment of this Act, elect under this 
section to be an eligible individual for purposes of this Act. 
Any such election shall be made by filing with the Com-
missioner of Social Security, the Secretary of the Treas-
ury, and each person (if any) who is an employer of such 
individual on the date of the filing, in such form and man-
ner as shall be prescribed in regulations of the Commis-
sioner (in consultation with the Secretary of the Treas-
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ury), a written and signed declaration of such individual’s 
intention to be treated as an eligible individual for pur-
poses of this Act. An election under this section shall be 
effective with respect to wages paid, and self-employment 
income derived, on or after January 1 following the date 
of the filing of the election. 
(b) ELECTION INEFFECTIVE IF ENTITLED TO SO-
CIAL SECURITY BENEFITS.—Any election under this sec-
tion shall not take effect if, as of the effective date of the 
election, the individual is entitled to an old-age insurance 
benefit under section 202(a) of the Social Security Act or 
to a disability insurance benefit under section 223 of such 
Act. 
(c) IRREVOCABILITY SUBJECT TO GRACE PERIOD.— 
(1) IN GENERAL.—Unless revoked in accord-
ance with paragraph (2), an election under this sec-
tion shall be irrevocable. 
(2) TWO-YEAR GRACE PERIOD.— 
(A) IN GENERAL.—An individual may re-
voke an election under this section by filing 
with the Commissioner of Social Security, the 
Secretary of the Treasury, and each person (if 
any) who is an employer of such individual on 
the date of the filing, in such form and manner 
as shall be prescribed in regulations of the 
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Commissioner (in consultation with the Sec-
retary of the Treasury), a written and signed 
revocation of the election at any time before the 
end of the two-year period beginning with the 
effective date of the election. A revocation 
under this subsection shall take effect January 
1 following the date of the filing of the revoca-
tion, except that a revocation filed during the 
90-day period beginning with the date of the fil-
ing of the election shall take effect as of the ef-
fective date of the election. Upon the effective 
date of a revocation under this subsection, enti-
tlement to benefits under title II of the Social 
Security Act shall be determined as if the re-
voked election had not occurred, except that, for 
purposes of any such entitlement, wages paid, 
and self-employment income derived, during the 
period for which the election was in effect shall 
not be taken into account. No subsequent elec-
tion under this section may take effect with re-
spect to an individual who has filed a revocation 
under this subsection (except a revocation filed 
during the 90-day period beginning with the 
date of the filing of the election). 
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(B) REDUCTION IN BENEFITS.—The pri-
mary insurance amount, as determined under 
section 215 of the Social Security Act, of any 
individual who has filed a revocation under this 
subsection before the end of the two-year period 
described in subparagraph (A) (and after the 
90-day period referred to in subparagraph (A)) 
shall be reduced (except for purposes of deter-
mining benefits under section 223 of such Act, 
and before any application of section 215(i) of 
such Act) by 20 percent. 
SEC. 106. PENALTIES. 
(a) FAILURE TO ESTABLISH S.A.F.E. ACCOUNT 
PAYROLL DEDUCTION PROGRAM.—Any covered employer 
who fails to meet the requirements of section 102 for any 
calendar year shall be subject to a civil penalty of not to 
exceed— 
(1) $250,000, in the case of an employer who 
is an individual, or 
(2) $500,000, in any other case. 
(b) FAILURE TO MAKE DEDUCTIONS REQUIRED 
UNDER PROGRAM.—Any covered employer who fails to 
timely deduct in full the amount from the wages of an 
employee who is an eligible individual as required under 
an applicable S.A.F.E. account payroll deduction program 
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shall be subject to a civil penalty for each such failure 
of not to exceed— 
(1) $250,000, in the case of an employer who 
is an individual, or 
(2) $500,000, in any other case. 
(c) FAILURE
TO
PAY
DEDUCTED
WAGES
TO 
S.A.F.E. ACCOUNT.—If an amount deducted under a 
S.A.F.E. account payroll deduction program from the 
wages of an employee who is an eligible individual is not 
timely paid in full to the designated S.A.F.E. account in 
accordance with section 102, the covered employer failing 
to make such payment— 
(1) shall be subject to a civil penalty for each 
such failure of not to exceed— 
(A) $250,000, in the case of an employer 
who is an individual, or 
(B) $500,000, in any other case, and 
(2) shall be liable to the employee for interest 
on the unpaid amount at a rate equal to 10 percent-
age points in excess of the Federal short-term rate 
under section 1274(d)(1) of the Internal Revenue 
Code of 1986, calculated from the last day by which 
such amount was required to be so paid to the date 
on which such amount is paid into the designated 
S.A.F.E. account. 
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(d) FAILURE TO PAY PRESCRIBED SELF-EMPLOY-
MENT CONTRIBUTIONS TO S.A.F.E. ACCOUNT.—Any eli-
gible individual failing to timely pay in full a prescribed 
self-employment contribution to a designated S.A.F.E. ac-
count as required under section 104 shall be subject to 
a civil penalty for each such failure of not to exceed 
$250,000, plus interest on the unpaid amount at a rate 
equal to 10 percentage points in excess of the Federal 
short-term rate under section 1274(d)(1) of the Internal 
Revenue Code of 1986, calculated from the last day by 
which such amount was required to be so paid to the date 
on which such amount is paid into the designated 
S.A.F.E. account. 
(e) RULES FOR APPLICATION OF SECTION.— 
(1) PENALTIES
ASSESSED
BY
COMMISSIONER 
OF SOCIAL SECURITY.—Any civil penalty assessed by 
this section shall be imposed by the Commissioner of 
Social Security and collected in a civil action. 
(2) COMPROMISES.—The Commissioner may 
compromise the amount of any civil penalty imposed 
by this section. 
(3) AUTHORITY TO WAIVE PENALTY IN CER-
TAIN CASES.—The Commissioner may waive the ap-
plication of this section with respect to any failure 
if the Commissioner determines that such failure is 
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due to reasonable cause and not to intentional dis-
regard of rules and regulations. 
SEC. 107. FEDERAL CIVILIAN AND MILITARY PERSONNEL. 
(a) IN GENERAL.—Not later than the last day of the 
calendar year during which the date of enactment of this 
Act occurs, the Office of Personnel Management, after ap-
propriate study, shall submit to the President and each 
House of Congress a written report containing rec-
ommendations on how to provide for the application of this 
Act with respect to Federal civilian and military personnel. 
(b) REQUIREMENTS.—The report— 
(1) shall be prepared in consultation with the 
Social Security Administration, the Securities and 
Exchange Commission, and other appropriate agen-
cies; and 
(2) shall be accompanied by draft legislation 
which, if enacted, would carry out the recommenda-
tions contained in such report. 
(c) PROVISIONS RELATING TO THE CONTINUED OP-
ERATION OF EXISTING RETIREMENT SYSTEMS.—To the 
extent that the report and draft legislation relate to provi-
sions of law in effect before the date of enactment of this 
Act, each shall address at least the following: 
(1) FEDERAL
EMPLOYEES
RETIREMENT
SYS-
TEM.— 
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(A) Section 8401(11) of title 5, United 
States Code (relating to the definition of an 
‘‘employee’’), which includes the requirement 
that the individual concerned be someone whose 
civilian service is employment for the purposes 
of title II of the Social Security Act and chap-
ter 21 of the Internal Revenue Code of 1986. 
(B) Section 8421 of such title (relating to 
annuity supplement), which includes provisions 
incorporating the notion of the period of time 
for which the individual is or would be entitled 
to old-age insurance benefits under title II of 
the Social Security Act, and provisions for com-
puting the amount of such supplement based on 
the amount of certain benefits to which the in-
dividual would be entitled under such Act. 
(C) Section 8442 of such title (relating to 
rights of a widow or widower), which includes 
provisions under which a supplementary annu-
ity for a widow or widower is not payable to 
anyone who would not be entitled to certain 
benefits under the Social Security Act, and pro-
visions for the computation of any such annuity 
based on the amount of certain benefits which 
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would be payable to that individual under the 
Social Security Act. 
(D) Section 8443 of such title (relating to 
rights of a child), which includes provisions 
under which, as part of the formula for com-
puting the amount of a survivor annuity for a 
child, there is incorporated the notion of the 
amount of child’s insurance benefits which are 
or would be payable under title II of the Social 
Security Act. 
(2) CIVIL SERVICE RETIREMENT SYSTEM.— 
(A) Section 8334(k) of such title (relating 
to special rules for determining deductions and 
contributions for individuals subject to ‘‘offset- 
83’’ treatment), which incorporates the notion 
of the OASDI contribution made from Federal 
wages of the individual concerned. 
(B) Section 8349 of such title (relating to 
offset based on certain benefits under the Social 
Security Act), which incorporates notions relat-
ing to actual or constructive eligibility for bene-
fits under the Social Security Act, and the 
amount of those benefits. 
(3) COORDINATION PROVISIONS.—Provisions of 
law involving a reduction or other adjustment in re-
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tirement benefits (or eligibility therefor), based on 
any individual’s eligibility for benefits under title II 
of the Social Security Act. 
(4) OTHER
RETIREMENT
SYSTEMS.—Similar 
provisions of law under other retirement systems 
covering Federal civilian or military personnel. 
(d) PROVISIONS RELATING TO THE NEW SYSTEM.— 
To the extent that the report and draft legislation relate 
to the implementation of any other title of this Act, each 
shall address at least the following: 
(1) What the specifications for the S.A.F.E. ac-
count payroll deduction program or programs cov-
ering Federal civilian and military personnel shall be 
or, alternatively, how those specifications shall be de-
veloped. 
(2) Which agencies or instrumentalities of the 
Federal Government shall be responsible for oper-
ating or maintaining which aspects of the program 
or programs referred to in paragraph (1). 
(3) Which penalty provisions are appropriate or 
inappropriate with respect to the Federal Govern-
ment in its capacity as a ‘‘covered employer’’, sub-
ject to what modifications (if any). 
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TITLE II—TAX-EXEMPT S.A.F.E. 
ACCOUNTS 
SEC. 201. S.A.F.E. ACCOUNTS. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
additional itemized deductions for individuals) is amended 
by redesignating section 224 as section 225 and by insert-
ing after section 223 the following new section: 
‘‘SEC. 224. S.A.F.E. ACCOUNTS. 
‘‘(a) DEDUCTION ALLOWED.—In the case of an indi-
vidual, there shall be allowed as a deduction the aggregate 
amount paid in cash during the taxable year by or on be-
half of such individual to a S.A.F.E. account of such indi-
vidual. 
‘‘(b) LIMITATION.—The amount allowable as a de-
duction under subsection (a) for any taxable year shall not 
exceed 6.2 percent of the lesser of— 
‘‘(1) the contribution and benefit base (as de-
termined under section 230 of the Social Security 
Act) for the calendar year which ends with or within 
such taxable year, or 
‘‘(2) the sum of— 
‘‘(A) the amount of wages (as defined in 
section 3121(a)) received during such calendar 
year, and 
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‘‘(B) the amount of the self-employment 
income (as defined in section 1402) of such in-
dividual for the taxable year. 
Effective with the commencement of the 16th calendar 
year for which the individual’s election under section 105 
of the Savings Account for Every American Act of 2018 
is effective, the limitation under the preceding sentence 
shall be increased by any prescribed employer contribution 
paid to a personal retirement account of such individual 
pursuant to section 102(b)(2)(B) of such Act and the por-
tion of any prescribed self-employment contribution paid 
to such an account which is attributable to the increase 
in such contribution required by the last sentence of sec-
tion 101(7) of such Act. 
‘‘(c) S.A.F.E. ACCOUNT.—For purposes of this sec-
tion, the term ‘S.A.F.E. account’ means a trust created 
or organized in the United States exclusively for the ben-
efit of an individual or his beneficiaries, but only if the 
written governing instrument creating the trust meets the 
following requirements: 
‘‘(1) Except in the case of rollover contributions 
from another S.A.F.E. account of such individual— 
‘‘(A) no contribution will be accepted un-
less it is in cash, 
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‘‘(B) contributions will not be accepted for 
the taxable year in excess of 6.2 percent of the 
contribution and benefit base (as determined 
under section 230 of the Social Security Act) 
for the calendar year which ends with or within 
such taxable year, and 
‘‘(C) any contributions with respect to an 
account holder which are not accepted pursuant 
to this paragraph are promptly refunded di-
rectly to the account holder. 
In the case of any such individual, effective for tax-
able years beginning with or after the 16th calendar 
year for which the individual’s election under section 
105 of the Savings Account for Every American Act 
of 2018 is effective, ‘12.4 percent’ shall be sub-
stituted for ‘6.2 percent’ in subparagraph (B). 
‘‘(2) The trustee is a bank (as defined in sec-
tion 408(n)) or such other person who demonstrates 
to the satisfaction of the Secretary that the manner 
in which such other person will administer the trust 
will be consistent with the requirements of this sec-
tion. 
‘‘(3) No part of the trust funds will be invested 
in life insurance contracts. 
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‘‘(4) The interest of an individual in the bal-
ance in his account is nonforfeitable. 
‘‘(5) The assets of the trust will not be commin-
gled with other property except in a common trust 
fund or common investment fund. 
‘‘(d) TAX TREATMENT OF DISTRIBUTIONS.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, any amount distributed out 
of a S.A.F.E. account shall be included in gross in-
come of the distributee for the taxable year in which 
the distribution is received. Notwithstanding any 
other provision of this title (including chapters 11 
and 12), the basis of any person in such an account 
is zero. 
‘‘(2) EXCEPTIONS FOR DISTRIBUTIONS AFTER 
AGE 591⁄2
OR
DEATH.—Paragraph (1) shall not 
apply to any distribution out of a S.A.F.E. ac-
count— 
‘‘(A) made on or after the date on which 
the account beneficiary attains age 591⁄2, or 
‘‘(B) made to the account beneficiary (or 
to the estate of the beneficiary) on or after the 
death of the account beneficiary. 
‘‘(3) EXCEPTIONS FOR DISTRIBUTIONS TO PUR-
CHASE CERTAIN INSURANCE.—Paragraph (1) shall 
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not apply to any distribution out of a S.A.F.E. ac-
count to the account beneficiary to the extent such 
distributions do not exceed the sum of the expenses 
paid or incurred during the taxable year for— 
‘‘(A) any qualified long-term care insur-
ance contract (but only to the extent of eligible 
long-term care premiums (as defined in section 
213(d)(10)), 
‘‘(B) disability insurance, or 
‘‘(C) term life insurance. 
‘‘(4) EXCEPTIONS
FOR
CERTAIN
OTHER
DIS-
TRIBUTIONS.—Rules similar to the rules of para-
graphs (3), (4), (5), and (6) of section 408(d) shall 
apply for purposes of this section. 
‘‘(e) TAX TREATMENT OF ACCOUNTS.— 
‘‘(1) EXEMPTION FROM TAX.—A S.A.F.E. ac-
count is exempt from taxation under this subtitle 
unless such account has ceased to be a S.A.F.E. ac-
count by reason of paragraph (2). Notwithstanding 
the preceding sentence, any such account is subject 
to the taxes imposed by section 511 (relating to im-
position of tax on unrelated business income of char-
itable, etc. organizations). 
‘‘(2) ACCOUNT TERMINATIONS.—Rules similar 
to the rules of paragraphs (2) and (4) of section 
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408(e) shall apply to S.A.F.E. accounts, and any 
amount treated as distributed under such rules shall 
be treated as not used to pay expenses described in 
subsection (d)(3). 
‘‘(f) ADDITIONAL TAX ON AMOUNTS INCLUDED IN 
GROSS INCOME.—If any distribution from a S.A.F.E. ac-
count is includible in gross income of the account bene-
ficiary, the tax liability of such beneficiary under this 
chapter for the taxable year in which the distribution is 
received shall be increased by an amount equal to 20 per-
cent of the amount of the distribution. 
‘‘(g) OTHER DEFINITION AND SPECIAL RULES.— 
‘‘(1) ACCOUNT BENEFICIARY.—For purposes of 
this section, the term ‘account beneficiary’ means 
the individual for whose benefit the S.A.F.E. ac-
count was established. 
‘‘(2) CERTAIN RULES TO APPLY.—Rules similar 
to the following rules shall apply for purposes of this 
section: 
‘‘(A) Section 219(d)(2) (relating to no de-
duction for rollovers). 
‘‘(B) Section 219(f)(3) (relating to time 
when contributions deemed made). 
‘‘(C) Section 219(f)(5) (relating to em-
ployer payments). 
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‘‘(D) Section 408(g) (relating to commu-
nity property laws). 
‘‘(E) Section 408(h) (relating to custodial 
accounts). 
‘‘(h) REPORTS.—The trustee of a S.A.F.E. account 
shall make such reports regarding such account to the 
Secretary and to the individual for whose benefit the ac-
count is maintained with respect to contributions, dis-
tributions, and such other matters as the Secretary may 
by regulation prescribe. The reports required by this sub-
section shall be filed at such time and in such manner, 
and furnished to such individuals at such time and in such 
manner, as may be required by such regulations.’’. 
(b) DEDUCTION ALLOWED
IN ARRIVING
AT AD-
JUSTED GROSS INCOME.—Subsection (a) of section 62 of 
such Code is amended by inserting at the end the following 
new paragraph: 
‘‘(22) S.A.F.E. ACCOUNT
CONTRIBUTIONS.— 
The deduction allowed by section 224.’’. 
(c) TAX ON EXCESS CONTRIBUTIONS.— 
(1) Subsection (a) of section 4973 of such Code 
(relating to tax on excess contributions to individual 
retirement accounts, etc.) is amended by striking 
‘‘or’’ at the end of paragraph (5), by inserting ‘‘or’’ 
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at the end of paragraph (6), and by inserting after 
paragraph (6) the following new paragraph: 
‘‘(7) a S.A.F.E. account (within the meaning of 
section 224(c)),’’. 
(2) Section 4973 of such Code is amended by 
adding at the end the following new subsection: 
‘‘(i) EXCESS
CONTRIBUTIONS
TO
S.A.F.E. AC-
COUNTS.—For purposes of this section, in the case of 
S.A.F.E. accounts (within the meaning of section 224(c)), 
the term ‘excess contributions’ means the sum of— 
‘‘(1) the excess (if any) of— 
‘‘(A) the aggregate amount contributed for 
the taxable year to the accounts (other than 
rollover contributions), over 
‘‘(B) the amount allowable as a deduction 
under section 224 for such contributions, and 
‘‘(2) the amount determined under this sub-
section for the preceding taxable year, reduced by 
the sum of— 
‘‘(A) the distributions out of the accounts 
which were included in gross income under 
rules similar to the rules of section 408(d)(5) 
which apply to such accounts by reason of sec-
tion 224(d)(4), and 
‘‘(B) the excess (if any) of— 
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‘‘(i) the maximum amount allowable 
as a deduction under section 224(b) for 
the taxable year, over 
‘‘(ii) the amount contributed to the 
accounts for the taxable year. 
For purposes of this subsection, any contribution 
which is distributed out of the S.A.F.E. account in 
a distribution to which the rules similar to the rules 
of section 408(d)(4) which apply to such accounts by 
reason of section 224(d)(4) shall be treated as an 
amount not contributed.’’. 
(d) TAX ON PROHIBITED TRANSACTIONS.— 
(1) IN
GENERAL.—Paragraph (1) of section 
4975(e) of such Code (relating to prohibited trans-
actions) is amended by striking ‘‘or’’ at the end of 
subparagraph (F), by redesignating subparagraph 
(G) as subparagraph (H), and by inserting after 
subparagraph (F) the following new subparagraph: 
‘‘(G) a S.A.F.E. account described in sec-
tion 224(c), or’’. 
(2) SPECIAL RULE.—Subsection (c) of section 
4975 of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(7) SPECIAL RULE FOR S.A.F.E. ACCOUNTS.— 
An individual for whose benefit a S.A.F.E. account 
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is established shall be exempt from the tax imposed 
by this section with respect to any transaction con-
cerning such account (which would otherwise be tax-
able under this section) if section 224(e)(2) applies 
with respect to such transaction.’’. 
(e) FAILURE TO PROVIDE REPORTS ON S.A.F.E. AC-
COUNTS.—Paragraph (2) of section 6693(a) of such Code 
(relating to failure to provide reports on individual retire-
ment accounts or annuities) is amended by striking ‘‘and’’ 
at the end of subparagraph (E), by striking the period 
at the end of subparagraph (F) and inserting ‘‘, and’’, 
and by adding at the end the following new subparagraph: 
‘‘(G) Section 224(h) (relating to S.A.F.E. 
accounts).’’. 
(f) CLERICAL AMENDMENTS.— 
(1) The table of sections for part VII of sub-
chapter B of chapter 1 of such Code is amended by 
striking the item relating to section 224 and insert-
ing the following new items: 
‘‘Sec. 224. S.A.F.E. accounts. 
‘‘Sec. 225. Cross references.’’. 
(2) The table of sections for chapter 43 of such 
Code is amended by striking the item relating to sec-
tion 4973 and inserting the following new item: 
‘‘Sec. 4973. Tax on excess contributions to certain tax-favored accounts and 
annuities, etc.’’. 
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SEC. 202. EFFECTIVE DATE. 
The amendments made by this title shall apply to 
contributions made for taxable years beginning on or after 
the first day of the first calendar year beginning after the 
date of enactment of this Act. 
TITLE 
III—CONFORMING 
AMENDMENTS TO THE SO-
CIAL SECURITY ACT AND THE 
INTERNAL 
REVENUE 
CODE 
OF 1986 
SEC. 301. REDUCTIONS IN AND EXEMPTIONS FROM FICA 
TAXES AND SECA TAXES WITH RESPECT TO 
ELIGIBLE INDIVIDUALS. 
(a) FICA TAX ON EMPLOYEES.—Section 3101 of the 
Internal Revenue Code of 1986 (relating to OASDI tax 
on employees) is amended— 
(1) in subsection (a), by striking ‘‘In addition’’ 
and inserting ‘‘Subject to subsection (c), in addi-
tion’’; 
(2) by redesignating subsection (c) as sub-
section (d); and 
(3) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) EXEMPTION FROM OASDI TAX FOR ELIGIBLE 
INDIVIDUALS.—Subsection (a) shall not apply with re-
spect to wages received by an eligible individual (as de-
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fined in section 101(4) of the Savings Account for Every 
American Act of 2018).’’. 
(b) FICA TAX ON EMPLOYERS.—Section 3111 of 
such Code (relating to OASDI tax on employees) is 
amended— 
(1) in subsection (a), by striking ‘‘In addition’’ 
and inserting ‘‘Subject to subsection (c), in addi-
tion’’; 
(2) by redesignating subsection (c) as sub-
section (d); and 
(3) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) EXEMPTION FROM OASDI TAX WITH RESPECT 
TO ELIGIBLE INDIVIDUALS.—In the case of an eligible in-
dividual (as defined in section 101(4) of the Savings Ac-
count for Every American Act of 2018), effective with the 
16th calendar year for which such individual’s election 
under section 105 of such Act is effective, subsection (a) 
shall not apply with respect to wages received by such indi-
vidual.’’. 
(c) REDUCTION IN AND EXEMPTION FROM SELF- 
EMPLOYMENT TAX.—Subsection (a) of section 1401 of 
such Code (relating to OASDI tax on self-employment in-
come) is amended— 
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(1) in subsection (a), by striking ‘‘In addition’’ 
and inserting ‘‘Subject to subsection (c), in addi-
tion’’; 
(2) by redesignating subsection (c) as sub-
section (d); and 
(3) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) ADJUSTMENT TO OASDI TAX.— 
‘‘(1) REDUCTION.—In the case of an eligible in-
dividual (as defined in section 101(4) of the Savings 
Account for Every American Act of 2018), for tax-
able years beginning with or during the 1st 15 cal-
endar years for which such individual’s election is in 
effect under section 105 of such Act, the rate of tax 
under subsection (a) shall be 6.20 percent. 
‘‘(2) EXEMPTION.—In the case of such an eligi-
ble individual, effective for taxable years beginning 
with or during the 16th calendar year for which 
such individual’s election under such section 105 is 
effective, subsection (a) shall not apply.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to wages received on 
or after the first day of the first calendar year beginning 
after the date of enactment of this Act, and with respect 
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to self-employment income for taxable years beginning 
after such first day. 
SEC. 302. EXCLUSION OF ELIGIBLE INDIVIDUALS FROM 
OLD-AGE, SURVIVORS, AND DISABILITY IN-
SURANCE COVERAGE. 
(a) MONTHLY INSURANCE BENEFITS UNDER SEC-
TION 202.—Section 202 of the Social Security Act (42 
U.S.C. 402) is amended by adding at the end the following 
new subsection: 
‘‘Limitation on Payment to Eligible Individuals Under 
Savings Account for Every American Act of 2018 
‘‘(aa)(1) Notwithstanding any other provision of this 
title, no monthly benefits shall be paid under this section 
based on the wages and self-employment income of an eli-
gible individual (as defined in section 101(4) of the Sav-
ings Account for Every American Act of 2018). 
‘‘(2) Determinations of entitlement to hospital insur-
ance benefits under section 226 or 226A shall be made 
without regard to paragraph (1).’’. 
(b) DISABILITY INSURANCE BENEFITS UNDER SEC-
TION 223.—Section 223 of such Act (42 U.S.C. 423) is 
amended by adding at the end the following new sub-
section: 
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‘‘Limitation on Payment to Eligible Individuals Under 
Savings Account for Every American Act of 2007 
‘‘(k)(1) Notwithstanding any other provision of this 
title, no monthly benefits shall be paid under this section 
based on the wages and self-employment income of an eli-
gible individual (as defined in section 101(4) of the Sav-
ings Account for Every American Act of 2018). 
‘‘(2) Determinations of entitlement to hospital insur-
ance benefits under section 226 or 226A shall be made 
without regard to paragraph (1).’’. 
SEC. 303. INFORMATION PROVIDED IN SOCIAL SECURITY 
ACCOUNT STATEMENTS. 
(a) IN GENERAL.—Section 1143 of the Social Secu-
rity Act (42 U.S.C. 1320b–13) is amended to read as fol-
lows: 
‘‘SOCIAL SECURITY ACCOUNT STATEMENT 
‘‘Provision of Annual Statements 
‘‘SEC. 1143. (a) The Commissioner of Social Security 
shall provide an annual social security account statement 
(hereinafter in this section referred to as the ‘statement’) 
to each eligible individual who is not receiving benefits 
under title II and for whom a mailing address can be de-
termined through such methods as the Commissioner de-
termines to be appropriate. 
‘‘Contents of Statement 
‘‘(b) Each statement shall contain— 
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‘‘(1) the amount of wages paid to and self-em-
ployment income derived by the eligible individual as 
shown by the records of the Commissioner; 
‘‘(2) an estimate of the aggregate of the em-
ployer, employee, and self-employment contributions 
of the eligible individual for old-age, survivors, and 
disability insurance as shown by the records of the 
Commissioner; 
‘‘(3) a separate estimate of the aggregate of the 
employer, employee, and self-employment contribu-
tions of the eligible individual for hospital insurance 
as shown by the records of the Commissioner; and 
‘‘(4) an estimate of the potential monthly re-
tirement, disability, survivor, and auxiliary benefits 
payable on the eligible individual’s account together 
with a description of the benefits payable under the 
Medicare program of title XVIII. 
‘‘Eligible Individual 
‘‘(c) For purposes of this section, the term ‘eligible 
individual’ means an individual who— 
‘‘(1) has a social security account number, and 
‘‘(2) has wages or net earnings from self-em-
ployment.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to statements pro-
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vided on or after the first day of the first calendar year 
beginning after the date of enactment of this Act. 
Æ 
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