Universal Retirement Savings: Mandatory Employer Contributions and New Tax Credits
This Act establishes a universal personal savings program (UP Accounts) ensuring workers without workplace retirement plans gain access to employer-funded savings. Applicable employers (10+ employees) must make minimum contributions, and employees are automatically enrolled in retirement accounts with an opt-out option. The program is partially funded by increasing the highest individual and corporate income tax rates.
Key points
Employers with 10+ employees must make minimum contributions to employee retirement accounts (starting at $0.50 per hour).
Creation of UP Savings Accounts for short-term emergencies, allowing penalty-free withdrawals up to a limit (initially $2,500).
The highest individual income tax rate increases from 37% to 39.6%, and the corporate tax rate increases from 21% to 23%.
Employees are automatically enrolled in the UP Retirement Account at a 4% contribution rate, with the ability to opt out.
Status:
Introduced
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