House Democrats recently unveiled their version of retirement reform in a package called AmeriSave, which is designed to increase incentives for middle-class workers to save in a 401(k) account or IRA.
The AmeriSave plan, introduced by House Democratic Leader Nancy Pelosi (D-California), would match dollar-for-dollar the first $1,000 contributed to an IRA, 401(k), or similar plan. The match would be directly deposited into a participant’s 401(k) or IRA after they’ve filed their tax return. The plan also calls for automatic enrollment in company plans and faster 401(k) vesting, and would provide a tax credit to employers who encouraged workers to consult with a certified financial counselor about their retirement.
In addition, AmeriSave would give small businesses tax credits so they have some extra money to set up retirement accounts for their employees and themselves. It would also encourage employers to offer employees the option of converting their retirement plan into an annuity upon retirement. Employers would receive a tax credit to offset the cost of administering an annuity.