Employers that do not currently offer a retirement plan would receive a tax credit for setting up an IRA account for their employees under the Automatic IRA Act of 2010 (S 3760). The tax credit would cover related administrative costs.
Nearly all employees working for a private business that has at least 10 workers and does not already offer a retirement plan would be able to contribute to retirement savings through payroll deductions, bill sponsor Sen. Jeff Bingaman (D-NM) said in a statement. Employers would not be allowed to make contributions to the account.
“Giving workers a way to directly deposit some of their paycheck into a retirement account will help millions of Americans better prepare for their golden years,” Bingaman said.
“This legislation simply makes it easier for Americans to save for retirement without making businesses shoulder new burdens,” said Sen. John Kerry (D-MA), cosponsor of the bill.
S 3760 was referred to the Senate’s Committee on Finance.