This Senate bill is reportedly designed to promote savings for unforeseen events and potentially retirement savings, requiring employers with 10 or more employees to contribute 50 cents for every hour employees work. Contributions would be directed to the employer’s 401(k) plan, and in the absence of such a plan, they would be directed to federally approved ‘”UP Accounts”’, modeled after the Thrift Savings Plan for federal workers. Such accounts would be tailored to employees’ ages and savings needs, easily transferable, and have low fees. Tax credits would be available for employers’ contributions, companies with 15 or fewer employees receiving credits covering half of their required contributions. Those employees without access to a 401(k) would have access to UP Accounts and receive an individual tax credit as a way to encourage contributions.
www.planadviser.com; April 5, 2019.