Retirement Enhancement Act of 2006

The Retirement Enhancement Act of 2006 (H.R. 5322) proposed changes to the tax code to help Americans save more for their future. The bill sought to increase the annual contribution limits for various retirement accounts, including IRAs, 401(k)s, and similar plans for government and non-profit employees.

For everyday citizens, the bill’s primary impact would have been making it easier to qualify for the "Saver’s Credit," a tax credit that assists low-to-moderate income workers in building retirement savings. By doubling the income eligibility limits for this credit and making the program permanent, the legislation aimed to provide greater financial incentives for long-term saving.