......... Under the new initiative, the Treasury Department and the Internal Revenue Service will publish new guidance for small businesses on how to use automatic enrollment for the simplified plans. It will also encourage employers to institute an automatic “step up,” which increases a person’s saving rate each year or with each raise.
In a second move, Mr. Obama said the Internal Revenue Service would allow people to check a box on their tax returns and receive their tax refunds in the form of United States savings bonds. White House officials said there are about 100 million tax refunds each year, and the average is about $2,000.
In a third change, the government will make it easier for employees to contribute the money for unused vacation time and overtime to their retirement accounts. At the moment, most employers simply cash out the extra time and give the money to their workers.
Mr. Obama said the Treasury Department and the Internal Revenue Service were also publishing an easy-to-read guide to help people understand the arcane rules governing retirement plans when people change jobs.
White House officials said the new initiatives would go into effect immediately and come on top of two related proposals that Mr. Obama sent to Congress as part of his budget.
One would compel all but the smallest employers to offer retirement savings plans, and the other would expand the saver’s tax credit, which matches a family’s savings up to $1,000 a year. ............
My bold.
Wow. Just wow. Is anybody paying attention?Labels: screwed |
