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1 Encouraging Americans to Save Act A Proposal to Help Build Retirement Savings a tax credit into a federal matching The Encouraging Americans to Save Act (EASA) would reform savings income working Americans who contribute to a retirement contribution to middle and low -sponsored plan or on their own through an account, whether they save at work through an employer IRA. Significantly, the program would offer matching contributions for the first time to millions of individuals not covered by an employer -sponsored retirement plan, including those who save through or local government program —such as OregonSaves —that automatically enrolls an IRA under a state -sponsored retirement plan. The government match workers who do not have access to an employer d both encourage saving and help middle and low income earners build assets by providing an woul immediate, meaningful return on their personal contributions. What’s the i mpact? EASA would help middle and low income savers, many of whom do not benefit from the current saver’s credit because they have no income tax liability. The reformed credit would benefit everyone within the target income group who saves in an eligible account regardless of whether the taxpayer owes income taxes. Because the match would be de posited directly into the taxpayers’ account instead of being sent to the individual as a tax refund, the money would be saved rather than spent. How would it work? EASA would replace the current saver’s credit with a simple, 50% government match on contributions of up to $1000 made to 401(k) -type plans and IRAs by individuals with income up to $32,500 and per year couples with income up to $65,000. • The amount of the match would phase out over the next $10,000 of income for individuals les. and $20,000 for coup These income limits and the cap on the eligible contribution amount would be indexed for • inflation. • The match would be claimed on the individual 1040 or 1040 EZ income tax form and deposited directly into a wo sing the account number rker’s IRA, 401(k), or similar account u provided by the worker. If the individual provides an erroneous account number or none at all, the mat ch would be deposited into a MyRA account. A MyRA account is a Roth IRA maintained by the U.S. Treasury Department. The MyRA prog ram was established by the Obama administration to allow workers who do not have access to workplace savings plans to save for retirement. Amounts saved in MyRA accounts are invested in Treasury bonds. EASA would reestablish this program .

2 Encouraging A mericans to Save Act Section by Section Summary —Short title. The title of the bill is the Encouraging Americans to Save Act (EASA). Section 1 Section 2 This section reforms the —Matching Payments for Elective Deferrals and IRA Contributions. present law s aver’s credit by making it a refundable matching contribution that is directly deposited into a middle and low income saver’s retirement accounts. A 50% government match is available on the first $1000 of savings per year to an IRA, 401(k) plan, 403(b) ta x-deferred annuity, or a section 457(b) governmental plan for individuals with income up to $32,500 ($65,000 for couples). Section 3 —Establishment of MyRA Program. This section would reestablish the Obama Administration’s MyRA program. The Treasury Dep artment would be authorized to issue rules coordinating the establishment of MyRA accounts in connection with state and local government laws that enroll workers in retirement savings accounts. Section 4 —Promotion and Guidance. This section requires the Secretary of the Treasury to educate taxpayers on the benefits of the refundable government matching contribution established by EASA, as well as the MyRA program.

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