Saving for the Future Act

This bill creates a universal personal savings program to increase retirement savings, funded partly by raising individual and corporate income tax rates. It requires certain employers to contribute to retirement plans for employees, establishes a new federal board and accounts for retirement savings, and provides tax credits for employers and individuals.

Sec. 3, Universal personal savings: Employers with at least 10 full-time equivalent employees for at least 2 years must contribute to a qualifying retirement plan for each employee not in a defined benefit pension plan. The minimum contribution starts at $0.50 per hour worked per full-time employee for the first two years, then $0.60 for the next two years, with increases tied to wage growth. Employers can use various plan types, including a new UP Retirement Account. A Federal Universal Personal Savings Investment Board is created to oversee UP Accounts, which are portable defined contribution plans. Employees are auto-enrolled at a 4% contribution rate, with automatic escalation up to 10%, and can opt out. The Board must offer a menu of investment options including low-fee index funds.

Sec. 4, Increase in credit for small employer pension plan startup costs: The maximum startup cost credit for small employers is increased from $500 to $2,000, and the definition of eligible employer is expanded to include those with up to 250 employees.

Sec. 5, Credit for minimum employer contributions: A new tax credit is created for employer contributions required under the bill, equal to 50% of contributions for up to 15 employees and 25% for 16 to 30 employees. The credit is also available to tax-exempt employers.

Sec. 6, Additional credit for individuals making retirement contributions: A new 50% tax credit is created for individuals whose employer does not offer a retirement plan or who are not employed, on qualified retirement contributions up to a base amount.

Sec. 7, Increase in highest individual income tax rate: The highest individual income tax rate is increased from 37% to 39.6%.

Sec. 8, Increase in corporate income tax rate: The corporate income tax rate is increased from 21% to 23%.