Congress always has proposed legislation that will never make it to law and this thrift savings plan idea is one that is just an awful idea.<\/p>\n
Senator John Hickenlooper (D-Colo.), a sponsor of a controversial bill to create a Thrift Savings-like plan for private sector workers, said he\u2019d reduce 401(k) savings to pay for the legislation.<\/p>\n
Hickenlooper has proposed the Retirement Savings for Americans Act (RSAA) and he said that he would lower 401(k) tax incentives and contribution limits to pay for the program.<\/p>\n
Supporters of RSAA say it would help low- and middle-income Americans build wealth and save for retirement. RSAA would require the federal government to pay matching contributions for workers, but only those who participate in the plan.<\/p>\n
The proposed 5% match under RSAA would encourage plan sponsors to terminate their 401(k) in favor of the federal plan. Plus based on Social Security, the Federal government doesn\u2019t have a great scorecard for retirement savings.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" Congress always has proposed legislation that will never make it to law and this thrift savings plan idea is one that is just an awful idea. Senator John Hickenlooper (D-Colo.), a sponsor of a controversial bill to create a Thrift … Continue reading