Description:
H.R. 6757, the Family Savings Act of 2018, would amend the tax code to modify requirements for tax-favored savings accounts and employer-provided retirement plans. The largest provisions include changes to the rules governing multiple and pooled employer retirement plans, the creation of new tax-preferred “Universal Savings Accounts,” to which an individual would be able to contribute up to $2,500 each year, and an exemption from required minimum distribution rules for individuals with account balances below certain amounts. The staff of the Joint Committee on Taxation (JCT) estimates that enacting the bill would reduce revenues by $21.0 billion over the 2019-2028 period. The change in revenues includes a reduction of about $0.3 billion over the 2019-2028 period that would result from changes in off-budget revenues (from Social Security payroll taxes). CBO estimates that enacting H.R. 6757 would increase direct spending by $2 million over the 2019-2020 period for a study for the Pension Benefit Guarantee Corporation (PBGC). Pay-as-you-go procedures apply because enacting the legislation would affect revenues and direct spending. CBO and JCT estimate that enacting H.R. 6757 would increase on-budget deficits by more than $5 billion in at least one of the four 10-year periods beginning in 2029. CBO and JCT estimate that enacting the bill would not increase net direct spending in any of the four consecutive 10-year periods beginning in 2029. CBO and JCT have determined that H.R. 6757 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA).
