Jan. 29 (Bloomberg) — President Barack Obama's proposal for encouraging low-income Americans to set money aside in accounts with tax advantages is a limited step that may help bolster retirement savings.

The proposal, detailed today by the administration, would let Americans with as little as $25 open individual retirement accounts that invest in government bonds. The principal, funded with post-tax contributions, would be protected and could be withdrawn without penalty at any time.

Such accounts would lack the broader investment options and employer match of workers' 401(k) retirement accounts.