Obama Discusses "Common Sense" Steps to Simplify Retirement System
This past weekend President Obama discussed his "common sense" steps to reform and simplify the system of retirement savings in the United States.
President Obama seeks to extend incentives and simplified savings vehicles to the 78 million Americans who do not have access to a retirement savings plan through their employer.
Some of the President's proposed changes include:
- The ability to put unused leave time, sick pay and tax refunds directly into retirement savings accounts.
- Simplified 401k enrollment.
- Use of federal tax refunds for direct purchase of savings bonds.
- A "plain English" guide to retirement accounts to be published by the IRS and Treasury.
- An automatic IRA enrollment and tax credit program for low and middle income Americans.
Source: Washington Post
Anonymous wrote on Wed, 09/09/2009 - 20:33:
What is an automatic IRA?
tom wrote on Thu, 09/10/2009 - 09:40:
An automatic IRA or "Auto-IRA" is an individual retirement account that involves mandatory enrollment.
Auto IRAs do not exist--they have simply been proposed by the Obama administration:
http://www.annuitydigest.com/content/obama-administration-proposes-manda...
The Obama administration wants to extend retirement savings vehicles to the 78 million individuals who do not have a 401k like option through their employer.