Introduced
by
To create a state-run retirement savings program for employees of small businesses that have no more than 25 workers and that don’t offer their own retirement plan. A state board would pick a vendor to manage the program, which would look like a 401k but actually manage tax-deferred IRA accounts owned by the employee. (IRAs have lower annual contribution caps than 401k accounts.) A conservative “target date” type fund would be the default investment for enrollees, who could also choose other types of funds or an employee-owned annuity. Management fees on the accounts would be capped at .75 percent. House Bill 5709 authorizes subsidies of up to $500 for enrollees in the form of “refundable” tax credits.
Referred to the Committee on Commerce and Trade
