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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 WarrenThe Hill's 12:30 Report - Presented by Facebook - Senate to vote on elections bill Supreme Court battle could wreak havoc with Biden's 2020 agenda Progressives fear nightmare scenario over voting rights assault MORE (D-Mass.), Mike LeeMichael (Mike) Shumway LeeSenate confirms Biden pick for No. 2 role at Interior Big Tech critic Lina Khan named chair of the FTC GOP senators press Justice Department to compare protest arrests to Capitol riot MORE (R-Utah), Ron WydenRonald (Ron) Lee WydenOvernight Health Care: White House acknowledges it will fall short of July 4 vaccine goal | Fauci warns of 'localized surges' in areas with low vaccination rates | Senate Finance leader releases principles for lowering prescription drug prices Equilibrium — Presented by NextEra Energy — Flaming shipwreck wreaks havoc on annual sea turtle migration Senate Finance chair releases principles for lowering prescription drug prices MORE (D-Ore.) and Tim ScottTimothy (Tim) Eugene ScottWhite House says Biden crime address won't undercut police reform bill Sen. Manchin paves way for a telehealth revolution Kerry Washington backs For the People Act: 'Black and Brown voters are being specifically targeted' 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.