Savings for American Families' Future Act of 2012 - Amends the Internal Revenue Code to: (1) increase the rate of the tax credit for retirement savings contributions, (2) make such credit refundable, and (3) direct the Secretary of the Treasury to pay matching credit amounts into taxpayer retirement accounts.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6472 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 6472
To amend the Internal Revenue Code of 1986 to expand the availability
of the saver's credit, to make the credit refundable, and to make
Federal matching contributions into the retirement savings of the
taxpayer.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 20, 2012
Mr. Neal (for himself, Mr. McDermott, Mr. Lewis of Georgia, Mr.
Blumenauer, Mr. Kind, and Mr. Ellison) 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 expand the availability
of the saver's credit, to make the credit refundable, and to make
Federal matching contributions into the retirement savings of the
taxpayer.
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 ``Savings for American Families'
Future Act of 2012''.
SEC. 2. MODIFICATION OF SAVER'S CREDIT.
(a) 50 Percent Credit for All Taxpayers: Expansion of Phaseout
Ranges.--Subsection (b) of section 25B of the Internal Revenue Code of
1986 is amended to read as follows:
``(b) Applicable Percentage.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the
applicable percentage is 50 percent.
``(2) Phaseout.--The percentage under paragraph (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 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
nearest whole percentage point.
``(3) Applicable dollar amount; phaseout range.--
``(A) Joint returns.--Except as provided in
subparagraph (B)--
``(i) the applicable dollar amount is
$65,000, 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 subparagraph (A) (as
adjusted under paragraph (4)), 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).
``(4) Inflation adjustment of applicable dollar amount.--In
the case of any taxable year beginning in a calendar year after
2012, the dollar amount in paragraph (3)(A)(i) shall be
increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2011' for `calendar year 1992' in
subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be
rounded to the nearest multiple of $500.''.
(b) Credit Made Refundable; Matching Contributions.--
(1) Credit made refundable.--The Internal Revenue Code of
1986 is amended by moving section 25B to subpart C of part IV
of subchapter A of chapter 1 of such Code (relating to
refundable credits), by inserting section 25B after section
36B, and by redesignating section 25B as section 36C.
(2) Matching contributions.--Subsection (g) of section 36C
of such Code, as redesignated by paragraph (1), is amended to
read as follows:
``(g) Matching Contributions.--
``(1) In general.--The credit allowed to an eligible
individual under this section for any taxable year shall be
twice the credit which would (but for this subsection) be
allowed if--
``(A) the individual consents to the application of
paragraph (2), and
``(B) a designation by such individual is in effect
for such year under paragraph (3).
``(2) Credit paid into designated retirement account.--Any
increase in credit under paragraph (1) for any taxable year
shall be paid by the Secretary into the designated retirement
account of the individual for such year. The amount payable
under the preceding sentence shall be subject to the reductions
under section 6402 in the same manner as if such amount were an
overpayment. The amount so paid shall be treated as refunded to
such individual.
``(3) Designated retirement account.--For purposes of this
subsection, the term `designated retirement account' means any
account or plan--
``(A) of a type to which qualified retirement
savings contributions may be made,
``(B) which is for such individual's benefit, and
``(C) which is designated by such individual (in
such form and manner as the Secretary may provide) on
the return of tax for the taxable year.
``(4) Treatment of matching contributions.--In the case of
an amount paid under paragraph (2) into a designated retirement
account--
``(A) any dollar limitation otherwise applicable to
the amount of contributions or deferrals to such
account shall be increased by the amount so paid,
``(B) the individual's basis in such account shall
not be increased by reason of the amount so paid, and
``(C) such amount shall be treated as an employer
contribution for the plan year in which such amount is
paid for purposes of--
``(i) section 401(k)(3), and
``(ii) section 408(k)(6)(A)(iii).
``(5) Regulations.--The Secretary shall prescribe such
regulations or other guidance as may be necessary to address
situations under which the Secretary is not able to make a
payment to a designated retirement account of an individual,
including a plan of an employer for which the individual no
longer works and to an account that does not exist.''.
(3) Conforming amendments.--
(A) Sections 24(b)(3)(B), 25(e)(1)(C), 26(a)(1),
and 1400C(d) of such Code are each amended by striking
``25B,''.
(B) The last sentence of section 25A(i)(5) of such
Code is amended by striking ``25B'' and inserting
``36C''.
(C) Sections 904(i) of such Code is amended by
striking ``23, 24, and 25B,'' and inserting ``23 and
24''.
(D) Section 6211(b)(4)(A) of such Code is amended
by inserting ``36C,'' after ``36B,''.
(E) 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.
(F) The table of sections for subpart C of such
part is amended by adding at the end the following new
item:
``Sec. 36C. Elective deferrals and IRA contributions by certain
individuals.''.
(G) Section 1324(b)(2) of title 31, United States
Code, is amended by inserting ``36C,'' after ``36B,''.
(c) Maximum Contributions.--Subsection (a) of section 36C of such
Code, as redesignated by subsection (b), is amended to read as follows:
``(a) Allowance of Credit.--
``(1) In general.--In the case of an eligible individual,
there shall be allowed as a credit against the tax imposed by
this subtitle for the taxable year an amount equal to the
applicable percentage of so much of the qualified retirement
savings contributions of the eligible individual for the
taxable year as do not exceed the contribution limit.
``(2) Contribution limit.--For purposes of paragraph (1)--
``(A) In general.--Except as otherwise provided in
this paragraph, the contribution limit is $500 ($1,500
for taxable years beginning after 2022).
``(B) Annual increases to reach $1,500.--In the
case of taxable years beginning in a calendar year
after 2012 and before 2023, the contribution limit
shall be the sum of--
``(i) the contribution limit for taxable
years beginning in the preceding calendar year
(as increased under this subparagraph), and
``(ii) $100.
``(C) Inflation adjustment.--In the case of any
taxable year beginning in a calendar year after 2022,
the $1,500 amount in subparagraph (A) shall be
increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2021'
for `calendar year 1992' in subparagraph (B)
thereof.
Any increase determined under the preceding sentence
shall be rounded to the nearest multiple of $50.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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