House Ways and Means Committee Chairman Richard Neal, D-Mass., said Tuesday that his committee will consider on Thursday and Friday his auto-IRA bill as well as making the Saver's Credit refundable — legislative proposals under the budget reconciliation instructions.
Neal's bill requires employers without employer-sponsored retirement plans to automatically enroll their employees in IRAs or 401(k)-type plans.
A spokesperson for Neal's office told ThinkAdvisor Tuesday in an email that there have been some refinements to Neal's auto-IRA plan. "For example, in this version, the auto IRA is the floor but employers also may satisfy the requirements of the proposal with an auto 401(k)," the spokesperson said.
The Saver's Credit would be refundable under Neal's plan so that those without any income tax liability would be eligible to receive the benefit in the form of a contribution to their retirement account.
"This grueling pandemic continues to deliver one-two punches in the form of the public health and economic crises, and the American people are counting on us to build back better," Neal said Tuesday in a statement. "Later this week, the Ways and Means Committee will put an end to the idea that only some workers are worthy of 'perks' like paid leave, child care, and assistance in saving for retirement, and finally commit to investments that make these supports fixtures of the American workplace."
