Expanding access to workplace retirement savings plans is one of several proposals involving retirement savings that President Obama is expected to include in his fiscal year 2017 budget request.
The White House announced this week that the proposals support expanding access to workplace savings. The proposals include:
- Allow small businesses to create pooled 401(k) plans
- Automatically enroll workers that do not have access to workplace savings into an individual retirement account (IRA)
- Provide tax credits for small businesses to help them establish retirement plans, or for employers that introduce auto enrollment to existing plans
- Allow long-term, part-time workers the ability to participate in their employer’s plan
The proposals also include piloting programs to enhance portability of retirement savings and help workers find lost or missing retirement accounts from previous jobs.
In addition to helping businesses set up workplace plans, the proposal would support auto-IRA accounts for workers without access to any workplace savings.
Efforts to create automatic payroll deduction forms of retirement savings plans are already underway in several states. The White House announcement noted that the Department of Labor is working on regulations and guidance to help states through the process as they consider setting up auto-IRA plans at the state level.
The proposals are expected to be part of the President’s fiscal year 2017 budget that is scheduled to be released next week. For more details on the President’s proposals review the fact sheet.