Obama unveils retirement-savings for workers lacking 401(k)

President Barack Obama is offering more Americans the chance to put away money for retirement through payroll deductions with a plan for new government-sponsored savings accounts. More

To continue reading this article, please do one of the following.



politics

Obama unveils retirement-savings for workers lacking 401(k)

BLOOMBERG PHOTO/LARRY DOWNING
PRESIDENT BARACK OBAMA during his State of the Union address Tuesday announced a new retirement plan for Americans who don't have access to a 401(k) plan, which would allow workers to invest part of their weekly pay in U.S. government bonds.
Posted 1/29/14

WASHINGTON – President Barack Obama is offering more Americans the chance to put away money for retirement through payroll deductions with a plan for new government-sponsored savings accounts.

The accounts, which Obama announced Tuesday in a State of the Union address that concentrated on expanding economic opportunity, will be aimed at workers who don’t have access to a 401(k) plan, administration officials said.

The “MyRA” plans, similar to individual retirement accounts, will provide “a new way for working Americans to start their own retirement savings,” Obama said.

Under the proposal, workers could have part of their pay deducted for deposit into an account invested in U.S. government bonds that would be treated for tax purposes as a Roth individual retirement account, with future earnings tax-free. The accounts would be open to people with annual household income up to $191,000 whose employers choose to participate, according to a White House fact sheet.

Initial investments could be as low as $25 and payroll contributions as low as $5. The plans, set up through the Treasury Department, would have a maximum balance of $15,000, after which money would have to be rolled over into a private-sector Roth IRA, the fact sheet said.

Laurence D. Fink, CEO of BlackRock Inc., the world’s largest asset manager, said in a statement Tuesday that he’s “tremendously encouraged” by a proposal he said he hoped would “kick off a much-needed national conversation” on retirement security.

Existing authority

The officials, who briefed reporters on condition of anonymity before Obama’s nationally televised speech, projected that millions of Americans would take advantage of the savings accounts. Participation would be voluntary and principal contributions will be guaranteed under the plan.

The president can establish the savings program under existing executive authority without new legislation, the officials said. Obama will announce details of the proposal on Wednesday during a visit to Pennsylvania, according to the fact sheet.

Next Page
Calendar
PBN Hosted
Events

Join PBN and two panels of successful female executives, business owners and entrepreneurs as we delve into what women should do to advance their careers, and become leaders in the corporate world and their own enterprises.
  • Book of Lists Party
    Save the date - January 15, 2015 for PBN's Book of Lists Party at the Providence ...
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement