About Auto IRA
The Automatic IRA has been proposed as a way for the roughly half of U.S. workers that are not offered a 401(k) or any other type of employer-sponsored plan to save for retirement.
The Auto IRA would enable employees to use an employer’s payroll system to channel savings to an IRA, similar to the way in which employees save through a 401(k). Employees would initiate saving, using their own money and choosing how much and where to save. Benefits include:
The Auto IRA would enable employees to use an employer’s payroll system to channel savings to an IRA, similar to the way in which employees save through a 401(k). Employees would initiate saving, using their own money and choosing how much and where to save. Benefits include:
- Application of successful elements of employer-based retirement savings such as payroll deposit saving, automatic enrollment and diversified default investments.
- Easy set up with minimal cost to the employer, especially for employers who already use direct deposit of paychecks.
- Ability for employers to facilitate employee savings without taken on a plan sponsorship role.
- Portability when an employee changes jobs.
As currently proposed, automatic IRAs would be provided by existing financial institutions and could be chosen by either the employee or the employer, while still allowing each employee to transfer funds to a preferred IRA provider. A temporary tax credit has been proposed to companies offering an automatic IRA, to offset any administrative costs of implementation.
For more information on the Automatic IRA proposal see:
Congressman Richard E. Neal Introduced the Automatic IRA Act of 2012 on the House Floor on February 16, 2012
Automatic IRA Act of 2010, Federal Register (Bill Summary)
AARP Applauds Introduction of Automatic IRA Bill, AARP
Annual Report of the White House Task Force on the Middle Class, Whitehouse.gov
Helping Workers Save for a Secure Retirement, Whitehouse.gov
Letters to the Vice President, Whitehouse.gov
Automatic IRA Builds Retirement Security, Heritage.org
Automatic IRAs: Extending Retirement Saving Opportunities to 78 Million More American Workers, Retirement Security Project
What the Media and Others are Saying about Automatic IRA, Retirement Security Project
What Auto IRA Means for Small Businesses, AARP
Pursuing Universal Retirement Security Through Automatic IRAs, J. Mark Iwry and David C. John. Retirement Security Project Policy Brief
“Saving for Retirement at Work: Employee and Business Reactions to an Automatic IRA Concept,” Prudential’s Four Pillars of Retirement Series. January 2008.
Check RMS Media Stream for Auto IRA news.
For more information on the Automatic IRA proposal see:
Congressman Richard E. Neal Introduced the Automatic IRA Act of 2012 on the House Floor on February 16, 2012
Automatic IRA Act of 2010, Federal Register (Bill Summary)
AARP Applauds Introduction of Automatic IRA Bill, AARP
Annual Report of the White House Task Force on the Middle Class, Whitehouse.gov
Helping Workers Save for a Secure Retirement, Whitehouse.gov
Letters to the Vice President, Whitehouse.gov
Automatic IRA Builds Retirement Security, Heritage.org
Automatic IRAs: Extending Retirement Saving Opportunities to 78 Million More American Workers, Retirement Security Project
What the Media and Others are Saying about Automatic IRA, Retirement Security Project
What Auto IRA Means for Small Businesses, AARP
Pursuing Universal Retirement Security Through Automatic IRAs, J. Mark Iwry and David C. John. Retirement Security Project Policy Brief
“Saving for Retirement at Work: Employee and Business Reactions to an Automatic IRA Concept,” Prudential’s Four Pillars of Retirement Series. January 2008.
Check RMS Media Stream for Auto IRA news.
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© Copyright 2012, Retirement Made Simpler. All rights reserved.
© Copyright 2012, Retirement Made Simpler. All rights reserved.
