Rep. Pitts Introduces Savings for Working Families Act
Congressman Joe Pitts (PA-16) reintroduced legislation today meant to assist America's working families in strengthening their financial security. The Savings for Working Families Act (SWFA) acknowledges the struggle many low-income families have with saving for the future. This legislation would match savings for future opportunities, provide financial education, and create a path to invest those savings in appreciable assets.
Congressman Pitts' statement follows:
"Saving money is always harder than spending it, but saving is very important to a family's financial security. This bill helps working families by providing an incentive in the form of matching contributions to development accounts, as well as financial education. Empowering individuals is a far more powerful tool than simply government assistance."
The Savings for Working Families Act (SFWA) promotes financial responsibility by providing a tax credit to financial institutions that match the savings of the working poor through IDA accounts. IDAs can be used for: 1) buying a first home; 2) receiving a post-secondary education; and 3) starting or expanding a small business.
Individual savings in IDAs are matched on a one-to-one basis, up to $500 per person per year. IDAs are operated through a partnership between financial institutions and local non-profit organizations. Financial institutions offering IDAs will be reimbursed through a federal tax credit for all matching funds, up to $500 per year. Those who save in IDAs receive financial planning education through these unique partnerships.