The federal government may follow the lead of nearly 20 states that have mandated programs to help workers save for retirement.

Rep. Richard Neal, D-Mass., ranking member of the House Ways and Means Committee, has re-introduced the Automatic IRA Act of 2024. It would require employees to automatically be enrolled in an IRA or other automatic contribution plan or arrangement, such as a 401(k). The legislation would create a new tax credit of $500 per year for three years for employers of up to 100 employees that offer either a state or national automatic IRA, in addition to other existing tax credits.

"Automatic IRAs are simple, effective and proven tools to help more workers save for secure retirements," Neal said. "Across the country, many state automatic IRAs are demonstrating that automatic IRAs not only work in increasing savings rates but also help close racial, gender and income savings gaps, and it's past time for the federal government to expand this success to all Americans."