Sen. Jeff Bingaman has introduced the Automatic IRA Act of 2010, a bill that would help more workers use payroll deduction programs to fund individual retirement accounts (IRAs).
The bill, S. 3760, would provide an IRA program tax incentive for employers with 10 or more workers that offer no retirement benefits.
An eligible employer could use the tax credit to cover the cost of administering the IRA program. Employers would not be allowed to contribute to the IRAs.
Employers that employ about 42 million people would be eligible for the tax credit, according to Bingaman, D-N.M.
Sen. John Kerry, D-Mass., is a cosponsor, and AARP, Washington, has endorsed the proposal.