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 WarrenSanders denies tweet about corporate Democrats was dig at Warren Sanders denies tweet about corporate Democrats was dig at Warren Warren: 'On Juneteenth and every day: Black lives matter' MORE (D-Mass.), Mike LeeMichael (Mike) Shumway LeeSecond ex-Senate staffer charged in aiding doxxing of GOP senators Second ex-Senate staffer charged in aiding doxxing of GOP senators Overnight Defense: Shanahan exit shocks Washington | Pentagon left rudderless | Lawmakers want answers on Mideast troop deployment | Senate could vote on Saudi arms deal this week | Pompeo says Trump doesn't want war with Iran MORE (R-Utah), Ron WydenRonald (Ron) Lee WydenOvernight Defense: House passes T spending package with defense funds | Senate set to vote on blocking Saudi arms sales | UN nominee defends climate change record Overnight Defense: House passes T spending package with defense funds | Senate set to vote on blocking Saudi arms sales | UN nominee defends climate change record Grassley announces opposition to key Trump proposal to lower drug prices MORE (D-Ore.) and Tim ScottTimothy (Tim) Eugene ScottOnly black GOP senator Tim Scott calls reparations a 'non-starter' Only black GOP senator Tim Scott calls reparations a 'non-starter' On The Money: Trump weighs emergency declaration for Mexico tariffs | GOP senators look to rein in Trump on trade | Powell says Fed may cut rates if trade war hurts economy 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.