Auto-enrollment: Full- and part-time workers who lack access to an employer-sponsored retirement plan would be eligible for an account, and they would be automatically enrolled at 3% of their income. Participants could choose to increase or decrease their withholding or opt out entirely at any time. Independent workers (including gig workers) also would be eligible.
Federal contribution: Low- and moderate-income workers would be eligible for a 1% automatic contribution (as long as they remain employed) and up to a 4% matching contribution via a refundable federal tax credit. This would begin to phase out at median income.
Portability: Accounts would remain attached to workers throughout their lifetimes.
Private Assets: The accounts would be the property of the worker, and the assets could be passed down to future generations to help them build wealth.
Investment options: Much like the TSP, participants would be given a menu of simple, low-fee investment options to choose from, including target date funds and index funds.

Related: House reintroduces retirement plan bill for private sector workers: Will it hurt small employers?

Another strong supporter of the new RSAA bill is President Trump's newly-appointed Director of the White House National Economic Council, Kevin Hassett, who served during the first two years of the Trump Administration. Hassett co-wrote the Economic Innovation Group's white paper, Inclusive Wealth-Building Initiative, which was the basis for the RSAA legislation. His white paper and the RSAA bill are supported by the Economic Innovation Group, a billionaire-backed think tank advocating for radical reform of the retirement system.

Instant Insights /

Congress reintroduces 'portable' federally-run retirement plan bill for private sector workers

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