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Automatic IRA Act: New Retirement Plans for Workers and Small Business Credits.

This Act introduces new rules for automatic Individual Retirement Arrangements (IRAs) for employees, making it easier to save for retirement through automatic payroll deductions. Employers will be required to offer these plans, and small businesses may qualify for tax credits. The goal is to expand access to retirement savings for more citizens.
Key points
Automatic Retirement Savings: Employers will be required to offer employees the option to automatically contribute a portion of their pay to an Individual Retirement Account (IRA), unless the employee opts out.
Small Business Tax Credits: Small businesses that establish automatic IRA arrangements may receive a $500 tax credit for the first three years.
Investment Choices and Fees: Plans must offer diverse investment options, including principal preservation, and ensure that fees and expenses are reasonable.
Penalty Protection: Contributions to IRAs exceeding the annual limit will not penalize the employer, and early withdrawals from an automatic IRA within 90 days of the first contribution will not incur a penalty.
State Law Preemption: The Act supersedes any state laws that would directly or indirectly prohibit or restrict automatic IRA arrangements, with an exception for existing qualified state-based programs.
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Expired
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Additional Information
Print number: 118_HR_7293
Sponsor: Rep. Neal, Richard E. [D-MA-1]
Process start date: 2024-02-07
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Automatic IRA Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_7293.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-02-07.

What are the main provisions?

Key points include:

  • Automatic Retirement Savings: Employers will be required to offer employees the option to automatically contribute a portion of their pay to an Individual Retirement Account (IRA), unless the employee opts out.
  • Small Business Tax Credits: Small businesses that establish automatic IRA arrangements may receive a $500 tax credit for the first three years.
  • Investment Choices and Fees: Plans must offer diverse investment options, including principal preservation, and ensure that fees and expenses are reasonable.
  • Penalty Protection: Contributions to IRAs exceeding the annual limit will not penalize the employer, and early withdrawals from an automatic IRA within 90 days of the first contribution will not incur a penalty.
  • State Law Preemption: The Act supersedes any state laws that would directly or indirectly prohibit or restrict automatic IRA arrangements, with an exception for existing qualified state-based programs.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Neal, Richard E. [D-MA-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

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