Core Provisions: The Savings Recovery Act is intended as a measure to help rebuild retirement, college, and personal savings. The legislation would increase the monthly exempt amount under the Social Security earnings test for individuals who have not reached retirement age. The bill also includes provisions that would exclude certain dividends and long-term capital gains of noncorporate taxpayers and increase the limitation on capital losses of noncorporate taxpayers. To increase opportunities for retirement savings, the bill would eliminate marriage penalties in income limitations with respect to individual retirement plan contributions; increase the amount that can be contributed to retirement plans; and increase the amount of allowed catch-up contributions to retirement plans, among other things. The legislation also targets savings for higher education by providing a credit for contributions to 529 plans.
Status: H.R. 2021 was introduced by Rep. Boehner (R-OH) on April 22, 2009 and referred to the Committees on Ways and Means and Education and Labor.