Reps. Messer, Kennedy Introduce Bipartisan Bill to Help Grad Students Save for Retirement

WASHINGTON (Dec. 7, 2016) — Reps. Luke Messer (R-IN) and Joe Kennedy III (D-MA) introduced bipartisan legislation in the U.S. House of Representatives today that would help graduate students save for retirement.

The Graduate Student Savings Act would allow graduate students or postdoctoral fellows who are paid for their work to save a portion of their stipend in an Individual Retirement Account (IRA). Fellowship and stipend funding is currently taxed as income by federal and state governments, but it does not qualify as “compensation” and so it cannot be saved in an IRA.

“I appreciate working with Congressman Kennedy on this common sense bill to help graduate students start saving while they're still in school,” Messer said. “Grad students and researchers who are studying to improve all of our futures should have the chance to invest in their own.”

“Students pursuing advanced degrees should be allowed and encouraged to invest in their future without restrictions or roadblocks,” Kennedy said. “By reclassifying income that is already taxed, this legislation will allow young adults to save as they begin new careers and build families. Along with Congressman Messer, I look forward to passing this bill and supporting current and future graduate students around the country.”

The Graduate Student Savings Act was originally introduced in the U.S. Senate by Senators Elizabeth Warren (D-MA) and Mike Lee (R-UT).  It recently passed the Senate Finance Committee, as part of a larger retirement package.

Messer authored several bills in the 114th Congress aimed at helping Americans save for retirement. He serves on the U.S. House Financial Services Committee and the Education and Workforce Committee.