Capito Introduces Legislation To Encourage Early Saving

Press Release

Rep. Shelley Moore Capito, R-W.Va., today introduced H.R. 5031, the Young Savers Tax Credit Act of 2010, which offers a tax credit of up to $500 to encourage young people to put money into a retirement fund early in life. The credit would be available to anyone under the age of 31 years old who invests at least 1 percent of their annual gross income into a qualified savings account. Capito's legislation would apply to individuals making $50,000 or less, or $100,000 for joint filers, beginning in 2010 and is linked to the consumer price index for the future.

"Young adults who decide to invest for their retirement should be rewarded with a little extra money at the end of the year," said Capito. "It is very important to create incentives for early saving. When people begin saving for retirement at a young age the compound interest takes effect much earlier, making them more financially secure in their retirement."

Capito's legislation follows a recent survey by the Employment Benefit Research Institute that shows nearly one third of workers have not saved any money toward their retirement.

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