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Expanded Student Saver's Tax Credit Act This bill allows full-time students to qualify for the federal Retirement Savings Contribution Tax Credit (commonly known as the Saver’s Credit) through 2026 and the federal Saver’s Match beginning in 2027. As background, an eligible individual may claim the nonrefundable Saver’s Credit for a percentage of contributions made to a qualified retirement account (e.g., individual retirement account or employer-sponsored retirement account). The maximum Saver’s Credit amount allowed is $1,000 (or $2,000 for married joint filers). Under current law, the Saver’s Credit will be replaced by the Saver’s Match in 2027. Under the Saver's Match, a matching contribution of up to $1,000 (or $2,000 for married joint filers) may be deposited into an individual’s qualified retirement account. Full-time students are currently not eligible for the Saver’s Credit or Saver’s Match. Under the bill, the definition of an eligible individual for purposes of the Saver’s Credit and the Saver’s Match is modified to include full-time students.
Market Impact Map
Action Timeline
2025-04-10
Referred to the House Committee on Ways and Means.
2025-04-10
Introduced in House
2025-04-10
Introduced in House
Full Bill Text
119 HR 2852 IH: Expanded Student Saver’s Tax Credit Act U.S. House of Representatives 2025-04-10 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 2852 IN THE HOUSE OF REPRESENTATIVES April 10, 2025 Ms. Johnson of Texas (for herself, Mr. Johnson of Georgia , and Ms. Norton ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow students to take the saver’s credit and receive the saver’s match. 1. Short title This Act may be cited as the Expanded Student Saver’s Tax Credit Act . 2. Saver’s credit and saver’s match allowed to individuals who are full-time students (a) Saver’s credit Section 25B(c)(2) of the Internal Revenue Code of 1986 is amended— (1) in the heading, by striking and full time students , and (2) by striking include— and all that follows through the period and inserting include any individual with respect to whom a deduction under section 151 is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins. . (b) Saver’s match Section 6433(c)(2) of such Code is amended— (1) in the heading, by striking and full time students , and (2) by striking include— and all that follows through the period and inserting include any individual with respect to whom a deduction under section 151 is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins. . (c) Effective date (1) Saver’s credit The amendments made by subsection (a) shall apply to contributions made after the date of the enactment of this Act. (2) Saver’s match The amendments made by subsection (b) shall take effect as if included in section 103 of the SECURE 2.0 Act of 2022.
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