In his recent State of the Union address, President Obama made his stance clear: More Americans should have the ability to save for retirement at work—and the ability to take their savings with them as they move from job to job. Obama’s proposals—which will be detailed further in his FY2017 budget—aim to ensure near universal access to workplace retirement savings accounts.
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Some of these initiatives are already underway and include:
- Expanding access to workplace retirement savings opportunities by encouraging more employers to offer plans and making it easier for workers to participate
- Providing more portable benefits models
- Launching myRA
- Making it easier for employers to create pooled 401(k) plans to lower cost and burdens
- Providing tax cuts for businesses that choose to offer more generous employer plans or switch to auto-enrollment
- Expanding retirement savings options for long-term, part-time workers
- Automatically enrolling workers without access to a workplace retirement plan in an IRA
- Issuance of a proposed rule and guidance facilitating states’ efforts to create their own retirement savings programs.
- Issuance of Treasury/IRS guidance making it easier for employers sponsoring a plan to accept rollovers from other employers’ 401(k)s
- Issuance of proposed new rules to ensure that retirement savers receive advice in their best interest, especially when changing jobs
Click here for the full Fact Sheet issued by the White House.