Extension and Enhancement of Savers Credit Allowed for Able Contributions
Section 70116 · Sec. 70116 ·
What this chapter is about
This part rewrites what counts toward the savers credit. Money paid into an ABLE account counts with no end date. Other retirement payments count only through 2026. The credit amount also rises to $2,100 from 2027.
“The term `qualified retirement savings contributions' means, with respect to any taxable year, the sum of--”
The section rewrites section 25B(d)(1) of the Internal Revenue Code of 1986 so that qualified retirement savings contributions are the sum of what the eligible individual pays into the ABLE account of which the individual is the designated beneficiary, plus, only for a taxable year beginning before January 1, 2027, qualified retirement contributions under section 219(e), elective deferrals under section 402(g)(3), elective deferrals under an eligible deferred compensation plan under section 457(b), and voluntary employee contributions to a qualified retirement plan under section 4974(c).
What the document actually says
“The term `qualified retirement savings contributions' means, with respect to any taxable year, the sum of--”
That sentence, in plain words
The term covers a sum of amounts. The list that follows says what goes into it.
What this is about
Money paid into an ABLE account always counts. Other savings count only through 2026. An ABLE account is a savings pot for a disabled person.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70116 in the PDF
What the document says
“Paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 is repealed, and the Internal Revenue Code of 1986 shall be applied and administered as though such paragraph were never enacted.”
The section repeals paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 and requires the Internal Revenue Code of 1986 to be applied and administered as if that paragraph had never been enacted.
What the document actually says
“Paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 is repealed, and the Internal Revenue Code of 1986 shall be applied and administered as though such paragraph were never enacted.”
That sentence, in plain words
One paragraph of a 2022 savings law is wiped out. The tax code is to be read as if it had never passed.
What this is about
That reaches back, not just forward. What the paragraph said is not recorded here. The 2022 law is not indexed on this site.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“Section 25B(a) is amended by striking "$2,000" and inserting "$2,100".”
The section strikes $2,000 and inserts $2,100 in section 25B(a) of the Internal Revenue Code of 1986. That change applies to taxable years beginning after December 31, 2026, while the other amendments and the repeal apply to taxable years ending after December 31, 2025.
What the document actually says
“Section 25B(a) is amended by striking "$2,000" and inserting "$2,100".”
That sentence, in plain words
The figure $2,000 is taken out. The figure $2,100 is put in.
What this is about
That change starts with tax years after 2026. The rest of the section starts a year sooner. Both dates are fixed in the law.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: the rewritten definition of qualified retirement savings contributions, the repeal of a paragraph of the SECURE 2.0 Act of 2022 with its retroactive effect, the higher credit amount, and the two effective dates.
The four kinds of retirement contribution the definition lists are carried in a summary rather than recorded one by one.
The section works by amending section 25B of the Internal Revenue Code of 1986 and repealing part of the SECURE 2.0 Act of 2022, neither of which is indexed here, so how the credit is worked out cannot be checked against anything on this site.
