President Obama announces new initiatives to make it easier to save for your retirement
As Labor Day approached, the Obama Administration announced on Saturday, September 5, new initiatives to help Americans save for retirement. Most of these changes will be enacted by the IRS immediately.
According to a White House statement, the new initiatives will both expand participation in automatic enrollment in 401 (k) and other retirement savings plans, make it easier for families to save a portion or the entirety of their tax refunds, allow workers to convert unused vacation and other similar workdays into retirement savings, and help workers and employers better understand tax-favored retirement saving options.
Currently, the great majority of American families are unable to save for retirement. Approximately half of the US workforce does not have access to an employer-give retirement plan, and fewer than 10 percent of those workers have a plan on their own.
In his weekly radio address, President Obama said that “making sure that folks have the opportunity and incentive to save – for a home or college, for retirement or a rainy day – is essential to that effort. If you work hard and meet your responsibilities, this country is going to honor our collective responsibility to you: to ensure that you can save and secure your retirement. That is why we are announcing several common-sense changes that will help families put away money for the future.”