The feds may soon require you to give employees the ability to enroll in individual direct-deposit retirement savings accounts.
At a recent meeting of the Middle Class Task Force, President Barack Obama and Vice President Joe Biden (the chairman of the task force) laid out their plan to help middle-class individuals and their families save more for retirement.
Here are the details of the task force’s plan, as reported by Investment News:
- Employers who don’t offer retirement plans would have to enroll their employees in direct-deposit IRAs automatically — but employees would be given the option to opt-out
- New tax credits would help pay employer administrative costs, and
- The smallest companies will be exempt.
No timetable has been set for when the proposed plan could take effect. We’ll keep you posted.
Do you think forcing employers to set up direct-deposit IRAs is a good idea? Let us know in the Comments Box below.