A bill before Congress seeking to increase retirement savings among workers will unnecessarily overburden small employers, according to a new report from Aite Group.
The Automatic IRA Act of 2010 will offer employees who currently lack an employer-sponsored retirement plan the opportunity to default 3% of their income in a Roth IRA account through a payroll deduction. If the bill is passed, employers with 100 or more employees will be mandated to offer the auto-enrollment IRA retirement plans in the first year, while smaller employers are being required to offer it in subsequent years. Employers that already offer a workplace retirement savings plan will be exempt.
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