WASHINGTON — President Barack Obama is launching an effort to help Americans save more for retirement, hoping a government nudge or two can get them to do what many are unable to do on their own. The package includes programs to guarantee access to a retirement plan through their jobs; expand the tax credits that reward saving for retirement; and tighten 401(k) regulations to make them safer and more efficient.
The so-called automatic IRA appears to have particularly strong backing in Congress. This would require employers who do not offer a retirement plan to enroll their employees in a direct-deposit individual retirement account unless the employee opts out.
Workers’ contributions would be steered into a basic investment option. Employers would receive a tax credit for offering the IRAs to offset any related administrative costs. The Associated Press; photo by Charles Dharapak, The Associated Press
