Sponsors (2)
The bill expands and incentivizes retirement saving access—especially for workers without employer plans and for small employers—while paying for some of that agenda by raising taxes on high earners and corporations and adding federal costs, implementation complexity, and eligibility restrictions that could burden employers and taxpayers.
Workers without employer plans (middle- and low-income) gain new, potentially portable and automatically accessible retirement saving options and heightened focus on closing retirement shortfalls, making it easier for those households to build retirement assets.
Small employers receive larger startup and refundable tax credits that lower the cost of establishing and contributing to workplace retirement plans, increasing the likelihood they will offer plans to employees.
Individuals excluded from employer plans can get a nonrefundable/refundable tax credit equal to 50% of retirement contributions (including to UP Accounts/IRAs), directly lowering tax bills and incentivizing saving.
Federal revenues fall due to multiple new and expanded tax credits, meaning taxpayers ultimately bear net costs through higher deficits or the need for offsets, spending cuts, or other revenue-raising measures.
Higher top individual and corporate tax rates will increase tax bills for high‑income individuals and C corporations and may reduce after-tax profits, investment, hiring, and potentially raise prices or slow growth.
The new programs and credits create legal uncertainty and additional administrative and compliance burdens (new payroll/agency systems, ERISA coverage questions, IRS complexity) that complicate planning for employers and increase costs for administration.
Based on analysis of 8 sections of legislative text.
Creates new employer and individual retirement contribution credits, adds a universal personal savings entry to ERISA (text not provided), and raises the top individual rate to 39.6% and corporate rate to 23% beginning in 2025.
Introduced October 31, 2025 by Scott Peters · Last progress October 31, 2025
Creates multiple new tax incentives to expand retirement saving and adds a new “universal personal savings” concept to ERISA while raising statutory tax rates for individuals and corporations. The bill increases the small-employer startup credit, creates a new refundable employer credit for required minimum contributions, establishes a new individual saver credit for people without employer plans, updates ERISA’s table of contents to add a universal savings subtitle (substantive text not provided), and raises the top individual income tax rate to 39.6% and the corporate tax rate to 23% for taxable years beginning after December 31, 2024 (i.e., taxable year 2025 onward).