H.R. 2852: Expanded Student Saver’s Tax Credit Act

This bill, known as the Expanded Student Saver’s Tax Credit Act, proposes changes to the Internal Revenue Code of 1986 to allow full-time students to benefit from the saver’s credit and saver’s match. Here are the main points of the bill:

Changes to the Saver’s Credit

The bill amends the existing saver’s credit rules to enable any individual who is regarded as a dependent by another taxpayer (typically a parent) to qualify for the saver’s credit. This means that full-time students can receive this tax incentive for contributions made to eligible retirement accounts, expanding access beyond just those who file their own tax returns.

Changes to the Saver’s Match

Similarly, the bill modifies the criteria for the saver’s match, which is a government contribution that matches certain retirement savings. By changing the language in the law, it ensures that full-time students who are considered dependents can also be eligible for this matching contribution, making it easier for them to save for retirement.

Effective Date

The changes to the saver’s credit will apply to contributions made after the bill is enacted into law. The amendments related to the saver’s match will take effect as if they were included in the SECURE 2.0 Act of 2022, which means they would apply to contributions beginning from that earlier legislation's specified date.

Overall Impact

This legislative change aims to encourage savings among full-time students by allowing them access to tax benefits that were previously not available to individuals of their status. It seeks to promote financial literacy and security for students by incentivizing them to save for their future retirement while pursuing their education.

Relevant Companies

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