By Naomi Jagoda - 02/04/16 02:13 PM EST
Dem bill offers tax credit to help retirement savings
A group of Democrats on the Senate Finance Committee on Thursday offered a bill that would enhance a tax credit to help working families save for retirement.
Senate Finance Committee ranking member Ron WydenRon WydenIRS inversion rules face blowback Senate faces critical vote on Puerto Rico Reid backs House Puerto Rico bill MORE (D-Ore.), who introduced the Encouraging Americans to Save Act, touted it as a way to help level the playing field.
“Not only are most Americans not prepared for retirement, but current tax incentives for retirement are skewed towards those who need help the least,” Wyden said in a news release.
“It’s a double whammy that’s fueling the country’s retirement crisis. This legislation aims to level the playing field and create an opportunity to help families save.”
Under current law, eligible taxpayers who defer income to tax-favored retirement plans or contribute to IRAs can receive a non-refundable "saver's credit."
The bill would make the saver's credit refundable so that people without tax liabilities can also receive a benefit, according to a summary of the legislation.
For both those with and without tax liabilities, the credit would be deposited directly into a myRA or a Roth retirement account under the legislation.
The bill counts Sens. Maria Cantwell (D-Wash.), Ben Cardin (D-Md.), Sherrod Brown (D-Ohio) and Bob Casey (D-Pa.) as co-sponsors.