Title: SAVERS Act
Policy area: Taxation

Summary:
Securing Additional Value for Every Retirement Saver Act or the SAVERS Act
This bill increases contribution limits to certain tax-preferred retirement plans in taxable years beginning in 2020 by the lesser of 300% or the compensation of the plan participant that is includible in gross income. For purposes of determining the compensation of plan participants, the bill allows an election to use compensation for 2019 in lieu of 2020.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6562 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6562

   To suspend the contribution limitations for certain tax-preferred 
                          retirement accounts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 21, 2020

 Mr. McHenry introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To suspend the contribution limitations for certain tax-preferred 
                          retirement accounts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securing Additional Value for Every 
Retirement Saver Act'' or the ``SAVERS Act''.

SEC. 2. SUSPENSION OF CONTRIBUTION LIMITATIONS FOR TAX-PREFERRED 
              ACCOUNTS.

    (a) Defined Contribution Plans.--
            (1) Aggregate annual additions.--The annual addition 
        limitation under section 415(c)(1) of the Internal Revenue Code 
        of 1986 (and any contribution limitation made applicable by 
        reference to subparagraph (A) thereof) for calendar year 2020, 
        or any taxable years beginning during 2020, as the case may be, 
        shall be an amount equal to the lesser of--
                    (A) 300 percent of the amount otherwise in effect 
                under such subparagraph for such calendar or taxable 
                year (determined without regard to this paragraph), or
                    (B) an amount equal to the employee's compensation.
            (2) Elective deferrals.--The applicable dollar amount for 
        elective deferrals under section 402(g) of such Code for any 
        taxable year beginning during 2020, and any dollar limitation 
        determined by reference thereto, shall not be less than an 
        amount equal to the lesser of--
                    (A) 300 percent of the amount otherwise in effect 
                for the taxable year (determined without regard to this 
                paragraph), or
                    (B) the individual's compensation from the employer 
                to which the plan relates for any taxable year 
                beginning on 2020.
            (3) 457 plans.--The maximum amount which may be deferred 
        for a taxable year beginning in 2020 under an eligible deferred 
        compensation plan (as defined in subsection (b) of section 457 
        of such Code) shall not be less than an amount equal to the 
        lesser of--
                    (A) 300 percent of the amount otherwise in effect 
                for the taxable year under subsection (e)(15) thereof 
                (determined without regard to this paragraph), or
                    (B) an amount equal to the participant's includible 
                compensation (as defined in subsection (e)(5) thereof) 
                for the taxable year.
    (b) Individual Retirement Accounts.--
            (1) In general.--For purposes of taxable years beginning in 
        2020, the limitation in effect under section 219(b)(1) of such 
        Code (and any limitation determined by reference to 
        subparagraph (A) thereof) shall not be less than an amount 
        equal to the lesser of--
                    (A) 300 percent of the amount otherwise in effect 
                under such subparagraph for the taxable year 
                (determined without regard to this paragraph), or
                    (B) an amount equal to the compensation includible 
                in the individual's gross income for such taxable year.
            (2) Simple retirement accounts.--In the case of elective 
        employer contributions to a simple retirement account (as 
        defined in section 408(p) of such Code) for 2020, the 
        applicable dollar amount under paragraph (2)(E) thereof shall 
        not be less than an amount equal to the lesser of--
                    (A) 300 percent of the amount otherwise in effect 
                under such paragraph for the year (determined without 
                regard to this paragraph), or
                    (B) the employee's compensation.
    (c) Compensation.--
            (1) In general.--Except as otherwise defined for purposes 
        of the provision to which one of the preceding subsections 
        relates, the term ``compensation'' for purposes of this section 
        shall have the meaning given such term in section 219 of such 
        Code.
            (2) Election to substitute 2019 compensation.--For purposes 
        of determining the amount of an individual's compensation under 
        subsections (a) and (b), in lieu of compensation for 2020 or 
        taxable years beginning in 2020, individuals may elect to use 
        compensation for 2019 or taxable years beginning 2019.
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