H.R. 5887

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5887 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 5887

To establish a universal personal savings program, and for other 
purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

October 31, 2025

Mr. Peters (for himself and Mrs. Torres of California) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Education and Workforce, for a 
period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
committee concerned

_______________________________________________________________________

A BILL

To establish a universal personal savings program, and for other 
purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Saving for the Future Act''.

SEC. 2. FINDINGS.

Congress finds as follows:
(1) 3 out of 10 private-sector workers lack access to any 
workplace retirement plan, according to a Bureau of Labor 
Statistics report from a 2023 report.
(2) A retirement study conducted by the Government 
Accountability Office found that 48 percent of households age 
55 and older have no retirement savings in a defined 
contribution plan or individual retirement account, and nearly 
30 percent of households age 55 and older have no retirement 
savings and no defined benefit plan.
(3) A 2022 report on the economic well-being of United 
States households conducted by the Federal Reserve found that 
28 percent of non-retirees reportedly did not have any 
retirement savings, and that 60 percent of non-retirees with 
self-directed retirement accounts expressed low levels of 
confidence in their ability to make the right investment 
decisions when investing in such accounts.

SEC. 3. UNIVERSAL PERSONAL SAVINGS.

(a) In General.--Subtitle B of title I of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1021 et seq.) is amended by 
adding at the end the following:

``PART 8--UNIVERSAL PERSONAL SAVINGS

``SEC. 801. DEFINITIONS.

``For purposes of this part:
``(1) Applicable employer.--The term `applicable employer' 
means an employer--
``(A) with at least 10 full-time equivalent 
employees; and
``(B) that has employed at least 10 full-time 
equivalent employees for not less than 2 years.
``(2) Board.--The term `Board' means the Federal Universal 
Personal Savings Investment Board established under section 
803.
``(3) Employee.--The term `employee', unless specified 
otherwise, includes full-time and part-time employees of an 
applicable employer.
``(4) Executive director.--The term `Executive Director' 
means the Executive Director of the UP Account Board appointed 
under section 803.
``(5) Full time.--The term `full time', with respect to 
employment, means 40 hours per week.
``(6) Full-time equivalent employee.--The term `full-time 
equivalent employee' means the sum of--
``(A) the number of employees working full time; 
and
``(B) the full-time equivalent of the number of 
employees working part-time, as defined and calculated 
in the manner determined most appropriate by the 
Secretary.

``SEC. 802. EMPLOYER CONTRIBUTION REQUIREMENTS.

``(a) Minimum Employer Contribution.--
``(1) In general.--Beginning in the first full taxable year 
following the date of enactment of the Saving for the Future 
Act, each applicable employer shall contribute to a qualifying 
plan, on behalf of each employee that is not enrolled in an 
active, defined benefit pension plan sponsored by such 
employer, the applicable minimum amount described in paragraph 
(2).
``(2) Minimum employer contribution.--
``(A) Initial amounts.--For the first year in which 
the requirements of paragraph (1) apply, and the 1 year 
immediately following such first year, the minimum 
amount an applicable employer is required to contribute 
for each full-time employee is $0.50 per hour worked by 
the employee.
``(B) Third and fourth years.--For the 2 years 
immediately following the period during which 
subparagraph (A) applies, the minimum amount an 
applicable employer is required to contribute for each 
full-time employee is $.60 per hour worked by the 
employee.
``(C) Subsequent years.--The Secretary shall 
increase the amounts described in subparagraph (B) for 
the year immediately following the period during which 
subparagraph (B) applies, and every 3 years thereafter, 
by an amount proportional to growth in average 
nonsupervisory wages.
``(3) Noncompliance.--In the case of an applicable employer 
that is found to be in violation of the requirement under 
paragraph (1), such employer shall be required to make the 
contributions required under paragraph (1), plus interest, at 
an interest rate set by the Secretary through rulemaking.
``(b) Qualifying Plans.--
``(1) In general.--Each applicable employer shall provide a 
pension plan for all employees.
``(2) Types of plans.--The pension plan required under 
paragraph (1)--
``(A)(i) in the case of an applicable employer with 
100 or more full-time equivalent employees, shall be an 
employer plan, which may be a plan described in section 
401(k) of the Internal Revenue Code of 1986, defined 
benefit pension plan, or any other plan described in 
section 219(g)(5) of the Internal Revenue Code of 1986; 
and
``(ii) in the case of an applicable employer with 
fewer than 100 full-time equivalent employees, shall be 
a plan described in subparagraph (A), a simple 
retirement account under section 408(p) of the Internal 
Revenue Code of 1986 or an automatic payroll deduction 
individual retirement account or multiple employer 
plan, including any current or prospective State-
established and-facilitated payroll deduction or 
automatic individual retirement account, or an UP 
Account described in section 804; or
``(B) in the case of an applicable employer who 
does not provide an employer contribution but offers a 
State-established or-facilitated program described in 
subparagraph (A)(ii), such employer shall provide an UP 
Retirement Account to which the employer makes 
contributions, and any employee contributions shall be 
directed to the State plan.
``(3) Clarification of employer obligations with respect to 
certain employees.--In the case of an applicable employer that 
offers a UP Retirement Account plan and any other type of plan 
described in subparagraph (A)(i), (A)(ii), or (B), as 
applicable, of paragraph (2), to employees, with respect to 
employees for whom the employer is not required under this Act 
to offer participation in such other type of plan, the 
requirements of this part may be met by allowing such employees 
to participate in such other plan.
``(c) Standard Notice.--The board shall develop a standard notice 
that employers with fewer than 10 workers electing not to make 
contributions are required to provide to each employee upon hire, and 
annually thereafter. Such notice shall provide instructions on how to 
set up an account, make contributions, and claim the individual credit 
under section 25BB of the Internal Revenue Code of 1986.

``SEC. 803. UP ACCOUNT BOARD.

``(a) Establishment of Board.--There is established a Federal 
Universal Personal Savings Investment Board, an independent government 
agency for the purpose of overseeing UP Accounts.
``(b) Membership.--
``(1) Appointment of members.--The President shall appoint, 
by and with the consent of the Senate, 5 members to serve on 
the Board. Such members shall have substantial experience, 
training, and expertise in the management of financial 
investments and pension benefit plans.
``(2) Executive director.--The Board shall hire an 
Executive Director of the Board.
``(3) Terms.--Each member shall serve a term of 5 years, 
except that, of the members first appointed, one shall serve a 
term of 1 year, one shall serve a term of 2 years, one shall 
serve a term of 3 years, one shall serve a term of 4 years, and 
one shall serve a term of 5 years. Each member of the Board may 
serve up to 2 consecutive terms.
``(c) Funding.--Administrative expenses incurred to carry out this 
part shall be paid first out net earnings in the UP Account Fund.

``SEC. 804. UP ACCOUNT FUND.

``(a) In General.--There is established in the Treasury of the 
United States a UP Account Fund.
``(b) Funds.--The UP Account Fund shall consist of all amounts 
contributed by participants, and employees on behalf of participants, 
into UP Retirement Accounts and UP Savings Accounts, increased by the 
total net earnings from investments of sums in the UP Account Fund or 
reduced by the total net losses from investments of the UP Account 
Fund, and reduced by the total amount of payments made from the UP 
Account Fund (including payments for administrative expenses).
``(c) Permissible Uses of Funds.--The sums in the UP Account Fund 
are appropriated and shall remain available without fiscal year 
limitation--
``(1) to invest in accordance with section 805(h);
``(2) to pay benefits or purchase annuity contracts under 
this subchapter; and
``(3) to pay administrative expenses.

``SEC. 805. UP RETIREMENT ACCOUNTS.

``(a) In General.--The Board shall establish UP Retirement Accounts 
that are portable, defined contribution pension plans.
``(b) Rollovers.--
``(1) Definitions.--For purposes of this subsection--
``(A) the term `eligible rollover distribution' has 
the meaning given such term by section 402(c)(4) of the 
Internal Revenue Code of 1986; and
``(B) the term `qualified trust' has the meaning 
given such term by section 402(c)(8) of the Internal 
Revenue Code of 1986.
``(2) Rollovers.--A participant may contribute to the UP 
Retirement Account an eligible rollover that a qualified trust 
could accept under the Internal Revenue Code of 1986. A 
contribution made under this subsection shall be made in the 
form described in section 401(a)(31) of the Internal Revenue 
Code of 1986. In the case of an eligible rollover distribution, 
the maximum amount transferred to the UP Account Fund shall not 
exceed the amount which would otherwise have been included in 
the participant's gross income for Federal income tax purposes.
``(3) Regulations.--The Executive Director shall prescribe 
regulations to carry out this subsection.
``(c) Administration.--The Board shall contract with one or more 
private investment firms to administer the UP Accounts. The Board shall 
contract with multiple private investment firms, as necessary to ensure 
that no single firm administers more than $500,000,000,000 in UP 
Account assets.
``(d) Individual Eligibility.--
``(1) In general.--An employee is eligible to participate 
in a UP Retirement Account if--
``(A) the employee's employer establishes a UP 
Retirement Account on the employee's behalf; or
``(B) the employee demonstrates to the Board that 
the employee works for a employer that is not an 
applicable employer.
``(2) Maintenance of account.--An individual who becomes a 
participant in a UP Retirement Account as described in 
paragraph (1) may maintain such account and may continue to 
make individual contributions to such account, regardless of 
such individual's subsequent employment status, provided that 
the individual is not a participant in another plan described 
in section 802(b)(2).
``(e) Quarterly Statements.--The Board shall provide participants 
with a quarterly statement explaining each participant's projected 
income in retirement under different distribution scenarios and 
identifying the total dollar amount paid in fees for the year.
``(f) Employee and Employer Contributions.--
``(1) Employee contributions.--
``(A) In general.--Applicable employers making 
contributions required under section 802 to a UP 
Retirement Account shall auto-enroll all employees in 
such an account with an employee contribution that is 
equal to 4 percent of the employee's wages, with the 
option for any such employee to elect a different 
employee contribution level or to opt out of such 
account at any time.
``(B) Auto-escalation.--Employees making 
contributions to a UP Retirement Account shall have 
their contributions automatically escalated by half a 
percentage point at the conclusion of each full year 
during which such employer is so enrolled, until 
reaching the level of a 10 percent employee 
contribution. Any employee may opt out of such 
automatic escalation.
``(C) Default elections in the case of changes in 
employment.--In the case of an employee who was 
enrolled in a UP Retirement Account through one 
employer and subsequently ceases to work for such 
employer, if the employee subsequently is employed by 
another applicable employer, the employee's default 
contribution level under this paragraph shall be the 
same level that it was on the last day of employment 
with the previous employer.
``(2) Employer contributions.--
``(A) In general.--Applicable employers may 
contribute more to an employee's UP Retirement Account 
than is required under section 802, but may not 
contribute more than \1/2\ the amount in effect under 
section 402(g)(1)(B) of the Internal Revenue Code of 
1986 for the taxable year.
``(B) Default rules.--Any employer matching 
requirements under this part shall apply to any 
employer contributions that are in addition to the 
minimum employer contribution.
``(C) Fiduciary duties.--An applicable employer's 
fiduciary duties with respect to an employee's UP 
Retirement Account extend only to the full and timely 
payment of contributions to their employees' UP 
Retirement Accounts. For all other purposes, the 
members of the Board are the fiduciaries of such 
accounts.
``(g) Participant Accounts.--
``(1) In general.--The Executive Director shall establish 
and maintain an account for each individual who makes 
contributions or for whom contributions are made under this 
section.
``(2) Balances.--The balance in a participant's account at 
any time is the excess of--
``(A) the sum of--
``(i) all contributions made to the UP 
Retirement Account by the participant;
``(ii) all contributions made to such 
Account for the benefit of the participant; and
``(iii) the total amount of the allocations 
made to and reductions made in the account 
pursuant to paragraph (3), over
``(B) the amounts paid out of the UP Retirement 
Account with respect to such participant.
``(3) Adjustments.--Pursuant to regulations prescribed by 
the Executive Director, the Executive Director shall allocate 
to each account an amount equal to a pro rata share of the net 
earnings and net losses from each investment of sums in the UP 
Account Fund attributable to sums credited to such account, 
reduced by an appropriate share of the administrative expenses 
paid out of the net earnings, as determined by the Executive 
Director.
``(h) Investments.--The following investment rules shall apply with 
respect to a UP Retirement Account:
``(1) The Board shall make available a reasonable menu of 
investment products, including low-fee index funds, sufficient 
to provide participants with the opportunity to diversify their 
UP Retirement Accounts in order to minimize the risk of large 
losses.
``(2) The default investment option for participants shall 
minimize fees, be diversified, and automatically reduce risk to 
the participant as the participant approaches retirement age.
``(3) UP Retirement Accounts shall allow participants to 
change or customize investment allocation.
``(4) The board shall select investments solely in the 
interests of participants and beneficiaries and for the 
exclusive purpose of providing benefits and deferring 
reasonable expenses with the prevailing care, skill, prudence, 
and diligence that a prudent individual acting in a like 
capacity and familiar with such matters would use.
``(i) Distributions.--
``(1) In general.--The Board shall ensure that investors 
are offered forms of distribution that include--
``(A) monthly income for life for the participant 
or surviving spouse, if applicable;
``(B) monthly income until the normal or maximum 
Social Security retirement age for the participant or 
surviving spouse, if applicable; and
``(C) automatic, regular withdrawals, under which a 
set percentage of initial capital is withdrawn each 
year, on a monthly basis.
``(2) Death of participant.--In case of death of a 
participant, a lump sum shall be paid to designated 
beneficiary.

``SEC. 806. UP SAVINGS ACCOUNTS.

``(a) In General.--In addition to a standard UP Retirement Account 
under section 805, a participant may maintain a UP Savings Account, 
established by the Board, and designed as safe, short-to medium-term 
savings vehicles.
``(b) Contributions; Maximum Balance.--
``(1) In general.--Participants may make contributions to 
their UP Savings Account until the account reaches the maximum 
balance amount described in paragraph (1). Any contributions a 
participant wishes to make after the participant's account 
reaches such maximum balance amount shall be credited to the 
participant's UP Retirement Account established under section 
805. A UP Savings Account may grow past the maximum balance 
amount due to accumulation without penalty.
``(2) Increased amounts.--The Board shall establish the 
maximum balance amount for purposes of paragraph (1) as 
follows:
``(A) For the first fiscal year that begins after 
the date of enactment of the Saving for the Future Act, 
the maximum balance amount shall be $2,500.
``(B) For fiscal year immediately following the 
fiscal year described in subparagraph (A), and each 
fiscal year thereafter, the Board shall increase the 
maximum balance amount from the previous year, in 
increments of $100 that most closely reflects the 
average wage growth during the applicable 12-month 
period.
``(3) Default rule.--Any contributions a participant makes 
pursuant to accounts established under this part shall be 
credited to the participant's UP Savings Account, until such 
has reached the maximum balance amount, unless the participant 
specifies otherwise. Once the maximum balance is reached, 
additional contributions will go to a participant's UP 
Retirement Account.
``(c) Investment.--The Board may invest contributions to UP Savings 
Accounts only in cash, money market funds, certificates of deposit, or 
government bonds.
``(d) Withdrawals.--Participants may withdraw amounts from their UP 
Savings Account when experiencing a specific financial situation that 
requires a non-routine use of money, as determined by the Board (in 
rules similar to the rules governing hardship distributions from a 
trust described in section 401(a) of the Internal Revenue Code of 1986 
which is exempt from taxation under section 501(a) of such Code). Such 
situations may include a major reduction in earnings, an on-the-job 
injury, disability, family or medical leave, a large medical bill, the 
down payment for a home, and the beginning of a training or educational 
experience. The Board shall determine the rules regarding such 
withdrawals, including allowable needs, and demonstration of the need, 
but shall not impose a withdrawal penalty or impose a repayment 
requirement. Loans to investors shall not be permitted.
``(e) Other Pension Plans.--Any pension plan may offer a safe, 
short-to medium-term savings account with terms similar to the terms 
that apply to UP Savings Accounts described in this section. For 
purposes of this Act, any such account shall be considered part of the 
pension plan.

``SEC. 807. TAX TREATMENT OF UP ACCOUNTS.

``(a) In General.--For purposes of the Internal Revenue Code of 
1986--
``(1) the UP Account Fund shall be treated as a trust 
described in section 401(a) of such Code which is exempt from 
taxation under section 501(a) of such Code;
``(2) any contribution to, or distribution from, the UP 
Account Fund shall be treated in the same manner as 
contributions to or distributions from such a trust; and
``(3) subject to section 401(k)(4)(B) of such Code and any 
dollar limitation on the application of section 402(a)(8) of 
such Code, contributions to the UP Account Fund shall not be 
treated as distributed or made available to an employee or 
Member nor as a contribution made to the Fund by an employee or 
Member merely because the employee or Member has, under the 
provisions of this part, an election whether the contribution 
will be made to the UP Account Fund or received by the employee 
or Member in cash.
``(b) Nondiscrimination Requirements.--Notwithstanding any other 
provision of law, the UP Account Fund is not subject to the 
nondiscrimination requirements applicable to arrangements described in 
section 401(k) of the Internal Revenue Code of 1986, or to matching 
contributions (as described in section 401(m) of such Code), so long as 
it meets the requirements of this section.
``(c) Rule of Construction.--Subsection (a) shall not be construed 
to provide that any amount of the employee's or Member's basic pay 
which is contributed to the UP Account Fund shall not be included in 
the term `wages' for the purposes of section 209 of the Social Security 
Act or section 3121(a) of the Internal Revenue Code of 1986.

``SEC. 808. QUALIFIED ROTH CONTRIBUTION PROGRAM.

``(a) Definitions.--For purposes of this section--
``(1) the term `qualified Roth contribution program' means 
a program described in paragraph (1) of section 402A(b) of the 
Internal Revenue Code of 1986 which meets the requirements of 
paragraph (2) of such section; and
``(2) the terms `designated Roth contribution' and 
`elective deferral' have the meanings given such terms in 
section 402A of the Internal Revenue Code of 1986.
``(b) Authority To Establish.--The Executive Director shall by 
regulation provide for the inclusion in the UP Accounts of a qualified 
Roth contribution program, under such terms and conditions as the Board 
may prescribe.
``(c) Required Provisions.--The regulations under subsection (b) 
shall include--
``(1) provisions under which an election to make designated 
Roth contributions may be made by any individual who is 
eligible to make contributions to a UP Account under section 
805(d); and
``(2) any other provisions which may be necessary to carry 
out this section.

``SEC. 809. SURVIVOR ANNUITIES.

``The rules on survivor annuities under subchapter IV of chapter 84 
of title 5, United States Code, that are applicable to the Thrift 
Savings Plan, shall apply to UP Accounts. The Executive Director shall 
promulgate regulations to provide for the application of such rules to 
UP Accounts, as appropriate.''.
(b) Clerical Amendment.--The table of contents in section 1 of the 
Employee Retirement Income Security Act of 1974 is amended by inserting 
after the item relating to section 734 the following new items:

``Part 8--Universal Personal Savings

``Sec. 801. Definitions.
``Sec. 802. Employer contribution requirements.
``Sec. 803. UP Account Board.
``Sec. 804. UP Account Fund.
``Sec. 805. UP Retirement Accounts.
``Sec. 806. UP Savings Accounts.
``Sec. 807. Tax treatment of UP Accounts.
``Sec. 808. Qualified Roth contribution program.
``Sec. 809. Survivor annuities.''.

SEC. 4. INCREASE IN CREDIT FOR SMALL EMPLOYER PENSION PLAN STARTUP 
COSTS.

(a) In General.--Paragraph (1) of section 45E(b) of the Internal 
Revenue Code of 1986 is amended by striking ``$500'' and inserting 
``$2,000''.
(b) Eligible Employers.--Paragraph (1) of section 45E(c) of the 
Internal Revenue Code of 1986 is amended by inserting ``, applied by 
substituting `250' for `100''' after ``408(p)(2)(C)(i)''.
(c) Penalty for Noncompliant Employers.--Subsection (c) of section 
45E of the Internal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph:
``(3) Employers failing to make required contributions.--
Such term shall not include an employer subject to the 
requirement of section 802(a)(1) of the Employee Retirement 
Income Security Act of 1974 that fails, within the time 
prescribed by the Secretary, to make any required contribution 
under such section 802 for the taxable year or any of the 4 
taxable years preceding such year.''.
(d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 5. CREDIT FOR MINIMUM EMPLOYER CONTRIBUTIONS.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45BB. CREDIT FOR MINIMUM EMPLOYER CONTRIBUTIONS.

``(a) General Rule.--For purposes of section 38, the minimum 
employer contribution credit determined under this section for any 
taxable year is an amount equal to the applicable percentage of the 
qualified retirement contributions paid or incurred by the taxpayer 
during the taxable year.
``(b) Applicable Percentage.--For purposes of subsection (a), the 
applicable percentage is--
``(1) 50 percent, in the case of contributions made with 
respect to not more than 15 employees of the employer (or the 
number of employees of the employer which is the equivalent of 
15 full-time employees), and
``(2) 25 percent, in the case of contributions made with 
respect to so many of the employees of the employer (or the 
equivalent of so many full-time employees) as exceeds 15 but 
does not exceed 30.
``(c) Qualified Retirement Contributions.--For purposes of this 
section--
``(1) In general.--The term `qualified retirement 
contributions' means--
``(A) contributions made by an employer as required 
under section 802 of the Employee Retirement Income 
Security Act of 1974, and
``(B) contributions to a plan described in section 
802(b)(2) of such Act made by an employer which is not 
subject to the requirement of section 802(a)(1) of such 
Act.
``(2) Only required contribution amount taken into 
account.--The term `qualified retirement contributions' does 
not include any amount in excess of--
``(A) the amount determined under section 802(a)(2) 
of the Employee Retirement Income Security Act with 
respect to each employee of the employer, or
``(B) the amount which would be so determined if 
the employer were subject to the requirement of section 
802(a)(1) of such Act.
``(d) Employers Excluded for Failure To Make Contributions.--
Subsection (a) shall not apply to any employer which fails, within the 
time prescribed by the Secretary, to make any contribution required to 
be made by such employer under section 802 of the Employee Retirement 
Income Security Act of 1974 for the taxable year or any of the 4 
taxable years preceding such year.
``(e) Special Rules.--For purposes of this section--
``(1) Aggregation rules, etc.--Rules similar to the rules 
of section 45E(e) shall apply.
``(2) Denial of double benefit.--No credit shall be allowed 
under this section for any taxable year in which the credit 
under section 45E is allowed with respect to the taxpayer.
``(f) Credit Made Available to Tax-Exempt Eligible Employers.--
``(1) In general.--In the case of a tax-exempt eligible 
employer, there shall be treated as a credit allowable under 
subpart C (and not allowable under this subpart) the lesser 
of--
``(A) the amount of the credit determined under 
this section with respect to such employer, or
``(B) the amount of the payroll taxes of the 
employer during the calendar year in which the taxable 
year begins.
``(2) Tax-exempt eligible employer.--For purposes of this 
section, the term `tax-exempt eligible employer' means an 
eligible employer which is any organization described in 
section 501(c) which is exempt from taxation under section 
501(a).
``(3) Payroll taxes.--For purposes of this subsection--
``(A) In general.--The term `payroll taxes' means--
``(i) amounts required to be withheld from 
the employees of the tax-exempt eligible 
employer under section 3401(a),
``(ii) amounts required to be withheld from 
such employees under section 3101(b), and
``(iii) amounts of the taxes imposed on the 
tax-exempt eligible employer under section 
3111(b).
``(B) Special rule.--A rule similar to the rule of 
section 24(d)(2)(C) shall apply for purposes of 
subparagraph (A).''.
(b) Credit To Be Made Part of Business Credit.--Subsection (b) of 
section 38 of the Internal Revenue Code of 1986 is amended by striking 
``plus'' at the end of paragraph (40), by striking the period at the 
end of paragraph (41) and inserting ``, plus'', and by adding at the 
end the following new paragraph:
``(42) in the case of an eligible employer, the minimum 
employer contribution credit determined under section 
45BB(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45BB. Credit for minimum employer contributions.''.
(d) Transfers to Federal Old-Age and Survivors Insurance Trust 
Fund.--There are hereby appropriated to the Federal Old-Age and 
Survivors Trust Fund and the Federal Disability Insurance Trust Fund 
established under section 201 of the Social Security Act (42 U.S.C. 
401) amounts equal to the reduction in revenues to the Treasury by 
reason of the enactment of section 45AA(f) of the Internal Revenue Code 
of 1986. Amounts appropriated by the preceding sentence shall be 
transferred from the general fund at such times and in such manner as 
to replicate to the extent possible the transfers which would have 
occurred to such Trust Fund had such amendments not been enacted.
(e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 6. ADDITIONAL CREDIT FOR INDIVIDUALS MAKING RETIREMENT 
CONTRIBUTIONS.

(a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25B the following new section:

``SEC. 25BB. ADDITIONAL CREDIT FOR CERTAIN INDIVIDUALS MAKING 
RETIREMENT CONTRIBUTIONS.

``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
subtitle for the taxable year an amount equal to 50 percent of so much 
of the qualified retirement contributions of the individual for the 
taxable year as do not exceed the base amount.
``(b) Eligible Individual.--For purposes of this section, the term 
`eligible individual' means an individual whose employer does not 
provide a defined benefit plan (as defined in section 414(j)), defined 
contribution plan (as defined in section 414(i)), or participation in a 
UP Account under section 805 of the Employee Retirement Income Security 
Act of 1974, or who is not employed, at the time the qualified 
retirement contributions are made.
``(c) Qualified Retirement Contributions, Etc.--For purposes of 
this section--
``(1) In general.--The term `qualified retirement 
contributions' means, with respect to any taxable year, any 
amounts paid in cash by an individual to--
``(A) an individual retirement plan, or
``(B) a UP Account established under section 805 of 
the Employee Retirement Income Security Act of 1974,
for the benefit of the individual.
``(2) Base amount.--The base amount for any taxable year is 
an amount equal to the amount in effect under section 
802(a)(3)(i) of the Employee Retirement Income Security Act of 
1974 for such year.
``(d) Special Rules.--
``(1) Investment in the contract.--Rules similar to the 
rules of section 25B(f) shall apply for purposes of this 
section.
``(2) Coordination with saver's credit.--The credit under 
this section and the credit under section 25B shall each be 
determined without regard to the other.''.
(b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25B the 
following new item:

``Sec. 25BB. Additional credit for certain individuals making 
retirement contributions.''.
(c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 7. INCREASE IN HIGHEST INDIVIDUAL INCOME TAX RATE.

(a) In General.--Each of the tables contained in subparagraphs (A), 
(B), (C), (D), and (E) of section 1(j)(2) of the Internal Revenue Code 
of 1986 is amended by striking ``37%'' in the last line and inserting 
``39.6%''.
(b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.

SEC. 8. INCREASE IN CORPORATE INCOME TAX RATE.

(a) In General.--Subsection (b) of section 11 of the Internal 
Revenue Code of 1986 is amended by striking ``21 percent'' and 
inserting ``23 percent''.
(b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2024.
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