Bill > HR5887

This bill establishes a Universal Personal Savings (UP) program to address retirement savings challenges in the United States. The bill requires employers with 10 or more full-time equivalent employees to contribute to retirement accounts for their workers, with initial contributions starting at $0.50 per hour worked and increasing over time. A new Federal Universal Personal Savings Investment Board will oversee the program, offering two types of accounts: UP Retirement Accounts and UP Savings Accounts. Employees will be automatically enrolled with a 4% contribution that can be adjusted, with automatic escalation up to 10% unless they opt out. The program allows for portable accounts that can be maintained across different jobs, provides a menu of low-fee investment options, and offers flexible distribution methods in retirement. The bill also includes tax incentives for employers and individuals contributing to retirement accounts, increases the highest individual income tax rate to 39.6%, and raises the corporate income tax rate to 23%. Additionally, the legislation creates tax credits for small employers establishing retirement plans and offers a credit for individuals making retirement contributions who do not have access to employer-sponsored plans, addressing the findings that nearly half of households aged 55 and older lack retirement savings.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/5887/all-info