Legislation to create portable retirement and investment accounts for all Americans, whether they are working or not, was floated on Capitol Hill Tuesday.
The Portable Retirement and Investment Account Act, H.R. 6990, introduced by Rep. Jim Himes, D-Conn., would create an account at birth that would remain with the individual at any employer or while unemployed or self-employed.
“The idea behind PRIA is to create an account that is personalized and independent of your employment situation and managed the way you want by the people you want,” Himes said in a statement.
Americans can stick with their 401(k)s, IRAs or other savings accounts, then roll these into the portable vehicle when they change jobs, he explained.
Employers could contribute the same way they do with current retirement plans, but the owners could also help fund it themselves.
Account holders could move their account to their own financial institution or make choices from a slate of investment options.
PRIA would also create an independent board managed by certain financial institution representatives to oversee the accounts.
At retirement, Americans would “have just one vehicle to manage, invested the way they have chosen,” according to the vision statement for the new retirement savings vehicle.