Encouraging Americans to Save Act

The Encouraging Americans to Save Act proposes to transform the existing nonrefundable "Saver’s Credit" into a direct government matching contribution to help low- and middle-income workers build retirement savings. Under this bill, eligible individuals aged 18 and older could receive a 50% federal match on their retirement contributions, up to a maximum of $1,000 per year. Instead of a tax refund, this match would be deposited directly into the individual’s 401(k), IRA, or a newly established "R-Bond" account to encourage long-term investment growth.

The bill also directs the Treasury Department to promote these savings incentives through a public awareness campaign to ensure more taxpayers are aware of the available benefits. By making the credit fully refundable and paid directly into a retirement account, the legislation aims to make it easier for citizens who owe little or no income tax to accumulate personal wealth for their retirement years.