Consumer Agenda for Retirement Security

Initiative # 3: Improve retirement savings plans 

H. Extend and expand the Saver’s Credit to help lower-income workers.

Current law provides a credit for low- and low-moderate income workers who contribute to a 401(k) plan or an individual retirement credit.  The credit, however, is non-refundable, which limits its effectiveness.  Moreover, the credit, which starts at 50 percent of the amount contributed, but the credit declines to 10 percent for individuals whose income is between $17,000 and $26,000.  The credit should be made refundable and the income limits for the most generous credit should be expanded.

Learn more about the other initiatives in the Consumer Agenda for Retirement Security.

Initiative 1: Promote a more adequate and secure private retirement income system.
Initiative 2: Empower workers to promote their own retirement security.
Initiative 3: Improve retirement savings plans.
Initiative 4: Improve traditional and hybrid pension plans.
Initiative 5: Make retirement plans fairer for workers and their spouses.

Print the Consumer Agenda for Retirement Security [PDF].