Bill > HR6722

This bill establishes a framework for Automatic IRA Arrangements, a new retirement savings program designed to help employees who do not currently have access to workplace retirement plans. The bill requires employers to facilitate an automatic enrollment process where employees are automatically enrolled in an Individual Retirement Account (IRA) with a default contribution rate that gradually increases from 6% to 10% over time, unless the employee opts out or chooses a different contribution level. The arrangement must offer specific investment options, including target date funds, principal preservation funds, and balanced funds, and must limit fees. Employers with 10 or fewer employees, new businesses, governmental entities, and churches are exempt from these requirements. Small employers who implement these arrangements can receive a $500 tax credit for up to three years, and the bill includes provisions to prevent unreasonable fees and encourage lifetime income options. The legislation also preempts state laws that might prohibit such arrangements and establishes an advisory group to help implement and refine the program. The bill is set to take effect for plan years beginning after December 31, 2027, with the goal of expanding retirement savings opportunities for workers who currently lack access to workplace retirement plans.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/6722/all-info