Presidential candidate Sen. Hilary Clinton (D-N.Y.) on Tuesday proposed government-sponsored 401(k)s that she called American Retirement Accounts, in which people could invest up to $5,000 a year, the Associated Press reports.
For those earning less than $60,000 a year, the government would match the first $1,000 and for those earning between $60,000 and $100,000 a year, the government would match 50% of the first $1,000.
Clinton said it would be funded by taxing estates worth more than $7 million per couple, thereby narrowing the gap between the wealthy and those who aren’t well prepared for retirement.
“They will begin to bring down this inequality that is eating away at our social contract,” Clinton said. “This is a major commitment to how I believe we can begin to right the balance again. We don’t have much of a nest egg to fall back on.”
She added that she would encourage plan sponsors to direct deposit funds from employees’ paychecks into these accounts.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.