The SECURE Act 2.0, currently being debated in Congress, contains a provision that would require employers to automatically enroll eligible employees in 401(k) or 403(b) plans and automatically contribute a percentage of the employee’s salary to the plan.
Supporters of the bill believe it’s a good way to help people save money for retirement — especially those who might not do so otherwise. But the bill’s opponents argue that automatic withholding would mean less take-home pay for workers already struggling to make ends meet. This Kiplinger article explains the pros and cons of the proposed legislation and the impact it could have on the retirement landscape.
This article was written by Kiplinger, an entity unrelated to HoyleCohen, LLC. The information herein is intended for educational purposes and has been selected by HoyleCohen due to the timeliness of the subject matter.