14 States Expand Retirement Savings Programs as 7 More and Puerto Rico Prepare Launches
Updated
Updated · Bloomberg Law · May 13
14 States Expand Retirement Savings Programs as 7 More and Puerto Rico Prepare Launches
3 articles · Updated · Bloomberg Law · May 13
Fourteen states now run retirement savings programs aimed at workers whose employers do not offer a plan, with seven more states and Puerto Rico preparing launches.
The programs target a long-standing gap at small businesses, which have offered employer-sponsored retirement plans at much lower rates than larger companies.
Employees can opt into automatic payroll deductions up to a set share of income, with contributions placed in state-vetted vehicles such as target-date funds.
State participation rules vary: some programs are voluntary for employers, while others require businesses to offer access to the state-backed savings option.
Should small businesses choose a private 401(k) with tax credits over mandated state retirement programs?
Will the new TrumpIRA.gov offer a better retirement option for workers than existing state-sponsored plans?