The Obama administration's budget proposal includes a provision for mandatory automatic enrollment in individual retirement accounts (IRA) or "auto-IRAs."
The administration's intent with auto-IRAs is to provide a "universal" retirement savings system that is employment-based.
Auto-IRAs would be mandatory for employers who do not offer a retirement savings plan--such as a 401k--to their employees. Administration officials suggest that such a system could impact up to 78 million Americans.
Default investment options for auto-IRAs are also being considered. Treasury officials are considering development of Treasury-issued retirement bonds or "R-bonds." Officials suggest that R-bonds would provide a low volatility investment option that would be suitable for first-time investors.
Source: Investment News
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