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119-hr-5887119th CongressWALLET

Saving for the Future Act

Sponsored By: Representative Peters, Scott H. [D-CA-50]

Introduced

Summary

This bill would create a federal universal personal savings program that sets up portable UP Retirement Accounts and UP Savings Accounts managed by a new Federal UP Account Board. It would require many employers to make escalating minimum contributions, add new business and saver tax credits, and raise top individual and corporate tax rates.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 3 benefits, 2 costs, 2 mixed.

50% credit for your retirement savings

You would be able to claim a nonrefundable tax credit equal to 50% of cash you put into an IRA or a UP Account, up to the yearly cap set by the program. You would qualify only if your employer does not offer a pension or 401(k)-type plan or a UP Account, or you were not employed when you contributed. This credit would be figured separately from the existing saver’s credit. It would apply to tax years beginning after the bill becomes law.

New credits for small employers’ contributions

Small employers could get a new credit for required retirement contributions: 50% for the first 15 workers and 25% for workers 16–30, subject to per‑employee caps. You could not claim it if you missed required contributions this year or in any of the past 4 years; tax‑exempt employers would be limited by payroll taxes. The bill would also raise the refundable startup plan credit cap to $2,000 and expand eligibility to employers with up to 250 employees. You could not claim the new contribution credit in a year you also take the startup credit. These tax changes would apply to tax years after enactment.

Higher top income tax rate

If enacted, the top individual tax rate would rise from 37% to 39.6% for tax years starting after December 31, 2024. If you have income taxed at the top rate, expect about 2.6% more tax on that slice of income each year.

Higher corporate tax rate

If enacted, the corporate income tax rate would increase from 21% to 23% for tax years starting after December 31, 2024. This would raise corporate tax bills and could affect prices and investment over time.

Automatic retirement saving with employer pay

This bill would set up portable worker retirement accounts and require many employers to pay in. Covered employers (generally 10+ full-time equivalents and 2+ years in business) would owe at least $0.50 per hour in years 1–2 and $0.60 in years 3–4, with updates every 3 years based on wage growth. Workers would be auto-enrolled at 4% of pay, rising 0.5 points a year up to 10%, with the right to opt out or choose a different rate. Large employers (100+ FTEs) would need to offer a 401(k)-type or pension; smaller employers could use simpler or state-facilitated options or the new UP Account, and could add more up to a federal cap. Employers who miss payments would have to make them up with interest; workers would get quarterly statements, and Roth and rollover options would be allowed. The employer contribution rules would start in the first full taxable year after enactment.

How new UP accounts are run

This bill would create a federal board to run the UP Account Fund and hire private firms to manage investments. No one firm could handle more than $500 billion of UP assets. The Fund would act like a tax‑exempt 401(a) trust; contributions and withdrawals would follow those tax rules, and certain 401(k) nondiscrimination and matching tests would not apply if program requirements are met. Fund money would stay available to invest, pay benefits or buy annuities, and cover administration. These rules would take effect on enactment.

New short-term savings for workers

This bill would add a small, safe UP Savings Account alongside retirement saving. You could save up to $2,500 in the first fiscal year after enactment, with the cap rising in $100 steps to track wage growth. By default, your contributions would fill this account first, then spill into your retirement account. Money would be kept in cash-like options, and you could withdraw for non‑routine needs without penalties. Loans would not be allowed.

Sponsors & CoSponsors

Sponsor

Peters, Scott H. [D-CA-50]

CA • D

Cosponsors

  • Rep. Torres, Norma J. [D-CA-35]

    CA • D

    Sponsored 10/31/2025

Roll Call Votes

No roll call votes available for this bill.

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