Could the Saver’s Credit Enhance State Coverage Initiatives?

The brief’s key findings are:

• States are introducing initiatives to provide retirement plan coverage to private sector workers who lack it.
• These initiatives could be supplemented by the Saver’s Credit, a federal tax incentive for low- and moderate-income savers.
• The existing Saver’s Credit is limited and not refundable, but proposed legislation would extend the Credit and make it refundable.
• Our analysis shows that the proposed Credit could considerably enhance state efforts by encouraging participation and savings.