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Obama proposes automatic IRA enrollment

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in Human Resources

President Obama used his State of the Union address in January to call on Congress to create a new kind of employer-sponsored retirement account: the “automatic workplace IRA.”

By default, workers would be enrolled in a direct-deposit individual retirement account. Workers could opt out of the program, but they would proactively have to do so. The thinking is that automatic enrollment will spur greater retirement savings, especially among younger workers.

Obama hoped that the State of the Union address would be a coming-out party for comprehensive health care reform legislation, but competing House and Senate bills remained stalled. There’s no indication if or when health care reform efforts will resume on Capitol Hill.

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