Automatic IRA Act of 2025

This bill would require most employers to offer workers a retirement plan that automatically enrolls them, such as an automatic IRA funded through payroll deductions, starting with plan years after 2027. Workers would be enrolled at a contribution rate starting at 6 percent of pay and rising each year to 10 percent, unless they choose a different amount or opt out. Employers that do not offer such a plan would owe a tax of $10 per affected employee per day, with exceptions for employers with 10 or fewer employees, businesses under 2 years old, government and church plans, and employers following certain state programs. Small employers that set up an automatic IRA would get a $500 tax credit for each of their first 3 years. The bill would also override state laws that prohibit or restrict automatic IRA arrangements.

Full text and official record on Congress.gov

Sponsors

• Richard E. Neal Democrat sponsor
• 4 cosponsors