Rep. Richard Neal (D-MA), ranking member on the House Ways & Means Committee, has reintroduced his automatic IRA legislation. The bill would require employers to enroll their workers (subject to a worker opt-out right) into workers’ individual IRAs.

Rep. Neal said the Automatic IRA Act “would require employers with more than 10 employees that do not sponsor a retirement plan to automatically enroll their employees in IRAs (automatic IRAs) or other automatic contribution plans like 401(k)s. Smaller employers would be eligible for a new auto IRA tax credit, making this requirement essentially costless to implement.”

Many insurance and financial services groups support the Automatic IRA Act, but NAIFA is concerned about the fact that it imposes a mandate on employers. NAIFA supports expansion of incentives to promote retirement savings, both in the context of employer sponsored plans and for individuals.

Prospects: There is little chance for movement of this bill this year. But, if Democrats regain control of the House next year, Rep. Neal will likely assume the chairmanship of the Ways & Means Committee, the committee with jurisdiction over this bill. If that happens, the bill’s prospects improve significantly.

NAIFA Staff Contacts: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.