Neal Reintroduces Automatic IRA Bill
WASHINGTON, DC— Ways and Means Committee Ranking Member Richard E. Neal (D-MA) reintroduced the Automatic IRA Act, which would expand retirement coverage for millions of workers. The legislation unlocks a key retirement savings vehicle for employees, gig workers, and other independent contractors nationwide.
“Automatic IRAs are simple and effective, and they have proven to be a successful tool to unlock secure retirements for more workers,” Ranking Member Neal said. “Across the country, many state automatic IRAs are demonstrating that they work not only in increasing savings rates but also to help close racial, gender, and income savings gaps. It’s past time for us to expand this opportunity to all Americans, and with the Automatic IRA Act of 2025, we can once again show that meaningful retirement legislation is possible in the Ways and Means Committee and in this Congress.”
Ranking Member Neal first introduced the Automatic IRA Act in the 109th Congress, and has remained steadfast in his commitment to securing the American people’s retirement savings. As of August 2025, one million workers have saved $2 billion in state automatic IRA programs, according to research from the Pew Charitable Trusts.
The bill generally would require employers with more than 10 employees that do not sponsor a retirement plan to automatically enroll their employees in IRAs (automatic IRAs) or other automatic contribution plans like 401(k)s. Smaller employers would be eligible for a new auto IRA tax credit, making this requirement essentially costless to implement.
A summary of the bill can be found HERE.
Full text of the Automatic IRA Act of 2025 is available HERE.
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