The "Saving for the Future Act" aims to establish a universal personal savings program to address significant gaps in retirement savings among American workers. Findings indicate that many private-sector employees lack access to workplace retirement plans, and a substantial portion of older households have no retirement savings, highlighting a critical need for broader access to savings vehicles.

The bill amends the Employee Retirement Income Security Act of 1974 (ERISA) to require applicable employers, generally those with at least 10 full-time equivalent employees for two years, to make minimum contributions to a qualifying plan. These contributions start at $0.50 per hour worked for full-time employees, increasing to $0.60 per hour after two years, with subsequent adjustments tied to wage growth. Employers can offer various plans, including 401(k)s or defined benefit plans, but smaller employers may also utilize new Universal Personal (UP) Accounts.

A new Federal Universal Personal Savings Investment Board is established to oversee these UP Accounts, which include both UP Retirement Accounts and UP Savings Accounts. UP Retirement Accounts are portable, defined contribution plans where employees are auto-enrolled with a 4% contribution rate, subject to auto-escalation and opt-out options. The Board contracts with private firms to administer these accounts, offering a menu of diversified, low-fee investment products with a default option that reduces risk over time.

UP Savings Accounts are designed as safe, short-to-medium-term savings vehicles with a maximum balance, initially set at $2,500, that can be withdrawn for specific financial needs without penalty. Contributions to these accounts are invested conservatively in options like cash or government bonds. The UP Account Fund, established in the Treasury, holds all contributions and earnings, operating as a tax-exempt trust.

To support the program, the bill introduces several tax provisions. It increases the credit for small employer pension plan startup costs and creates a new tax credit for employers making the required minimum contributions. Additionally, an individual tax credit is established for those whose employers do not offer a qualifying plan or who are unemployed, encouraging personal contributions to IRAs or UP Accounts. Funding for these initiatives is partially sourced through an increase in the highest individual income tax rate from 37% to 39.6% and the corporate income tax rate from 21% to 23%.