Senators offer bipartisan bill on retirement savings for grad students

Senators offer bipartisan bill on retirement savings for grad students
© Keren Carrion

A bipartisan group of senators on Monday offered legislation aimed at helping graduate students save for retirement. 

The bill — from Sens. Elizabeth WarrenElizabeth Ann WarrenOvernight Regulation: Net neutrality supporters predict tough court battle | Watchdog to investigate EPA chief's meeting with industry group | Ex-Volkswagen exec gets 7 years for emissions cheating Overnight Tech: Net neutrality supporters predict tough court fight | Warren backs bid to block AT&T, Time Warner merger | NC county refuses to pay ransom to hackers Avalanche of Democratic senators say Franken should resign MORE (D-Mass.), Mike LeeMichael (Mike) Shumway LeeSupreme Court takes on same-sex wedding cake case House approves motion to go to tax conference — with drama Trump really will shrink government, starting with national monuments MORE (R-Utah), Ron WydenRonald (Ron) Lee WydenDemocratic senator predicts Franken will resign Thursday Avalanche of Democratic senators say Franken should resign Lobbying world MORE (D-Ore.) and Tim ScottTimothy (Tim) Eugene ScottMcConnell names Senate GOP tax conferees GOP senator: Trump shouldn't pardon Flynn Trump should fill CFPB vacancy with Export-Import chief MORE (R-S.C.) — would allow graduate students to put money from stipends and fellowships into tax-deferred individual retirement accounts (IRAs). Under current law, stipend and fellowship funds are not treated as compensation that can be deposited into an IRA.

"This bipartisan bill opens a door for students who want to do the right thing and start saving early for their futures," Warren said in a news release. Warren and Lee previously introduced the bill last year. 

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The bill's reintroduction comes as the White House and congressional Republicans aim to pass a tax reform bill by the end of the year. GOP leaders on the tax reform effort have said they want a bill to preserve and streamline incentives for retirement savings. 
 
"Encouraging both educational progress and retirement savings is a win-win," said Scott, a member of the tax-writing Senate Finance Committee. "I'm glad to join a bipartisan group of Senators in this effort to make a commonsense adjustment to our tax code."
 
The senators' bill is endorsed by several businesses and labor groups, including Fidelity Investments, the Service Employees International Union and the American Federation of Teachers.