Search the News Archive

Proposed Retirement Security Legislation Would Give Every Worker Access to a Retirement Savings Plan

"The American Savings Act would establish a new universal savings account plan -- the American Savings Account [ASA] ... If your employer doesn't already offer a retirement plan, you'll automatically be given your own [ASA]. Initially, your employer will put 3% of your earnings into your account with each paycheck, but you can choose to adjust your contribution to as low as 2% of your income, or as high as $18,000 per year, or to opt out entirely. ASAs will have the same investment options as federal employees get through the TSP plan ... Workers will control their own accounts directly through a website. Contributions to an ASA would be tax-deductible, and participants would be able to rollover any previous IRAs into their ASA or roll their ASA funds into an employer-sponsored 401(k) or 403(b) plan."