Johnson Introduces Bill to Help Students Save for Retirement

WASHINGTON, DC - Today, on Tax Day, Congresswoman Julie Johnson (TX-32) introduced the Expanded Student Saver's Tax Credit Act. This bill allows full-time students with earned income to qualify for the federal Saver's Match, helping more young Americans start saving for retirement while they're still in school.

The federal Saver's Match, which will replace the Saver's Credit in 2027, is a refundable federal contribution deposited directly into taxpayers' retirement accounts. Currently, students enrolled in school for at least five months of the year are excluded from the Saver's Credit. Under current law, students will still be ineligible for the Saver's Match. Johnson's bill removes that "not a student" requirement, opening the program to any eligible individual with earned income, regardless of student status.

"Right now, we're sending the wrong message to students who work hard and try to save: that their effort doesn't count," said Johnson. "This bill fixes that. If you're earning a paycheck, you should be able to earn the Saver's Match-whether you're a medical resident, a student teacher, or an undergrad with a part-time job. More than one in four American adults have no retirement savings. We need to stop penalizing students for getting an education and start rewarding them for saving for the future. This is a practical step we can take to set students on the right path-early, consistently, and with the federal government matching their effort."

The change reflects growing recognition that students today are often financially independent and working while in school. Allowing them to access the Saver's Match helps close retirement savings gaps and builds lifelong financial habits.

To read the full text of the bill, click here.

Congresswoman Julie Johnson represents Texas' 32^nd Congressional District in the United States House of Representatives, serving on the Homeland Security Committee, Foreign Affairs Committee, and the House Administration Committee. Her district includes parts of Collin, Dallas, and Denton Counties.

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