A group of lawmakers recently introduced the Encouraging Americans to Save Act, designed to help working and middle-class families save for retirement.
The legislation was introduced by U.S. Sens. Ron Wyden (D-OR), ranking member of the Senate Finance Committee, Michael F. Bennet (D-CO), Bob Casey (D-PA), Dick Durbin (D-IL), Amy Klobuchar (D-MN), Bob Menendez (D-NJ), and Patty Murray (D-WA).
Per the legislation, the effort involves transforming the nonrefundable saver’s credit into a refundable, government matching contribution of up to $1,000 a year for middle and moderate-income workers saving through varied 401(k) type plans or IRAs.
“Low and middle-income workers, who are far less likely to have adequate retirement savings, need help,” Wyden said. “Democrats delivered critical relief to workers and families struggling to make ends meet during the pandemic, and now these folks need help in getting back on their feet and securing their financial future. Addressing our retirement crisis demands a comprehensive approach, and my bill is an important piece of the puzzle that would deliver meaningful federal retirement contributions year after year.”
The bill also features a COVID-19 recovery bonus credit providing up to $5,000 in additional government matching contributions for the first $10,000 saved during a five-year period beginning next year.