08.20.19
Lawmaker Makes Another Attempt to Push for National Auto-IRAs
by: Rebecca Moore
Senator Sheldon Whitehouse (D-RI) introduced legislation designed to help millions of Americans save for a financially secure retirement through an automatic payroll deduction Individual Retirement Account. The "Automatic IRA Act of 2019" would require employers that do not provide another qualified retirement plan and that have more than 10 employees to enroll workers automatically in an Auto-IRA, unless the employee opts out. Employers would receive tax credits to defray the costs of setting up the accounts. An employer with employees in a state that has a state-run automatic IRA program for private-sector employees and is mandated to participate in that program would be exempt. The bill would require an automatic deferral of 3 percent of the compensation of the employee into the IRA, or "such other percentage of compensation as is specified in regulations."
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