119th (2025–2027)
H.R. 6722
The Automatic IRA Act of 2025 requires most employers to establish automatic retirement savings programs for their employees, with contributions starting at 6% of wages and gradually increasing to 10%, while allowing workers to opt out or adjust their contribution rates. Eligible employees include most workers age 18-21 and older with minimal service requirements, and the bill requires investment options such as target-date funds and principal preservation accounts with restrictions on unreasonable fees. To help employers comply, the Treasury Department will create model forms and maintain a website with standardized information about approved providers and investment options. The legislation offers small employers a $500 annual tax credit for three years if they establish an automatic IRA program, while imposing a $10-per-day excise tax on larger employers who fail to maintain these arrangements, with exemptions for businesses under 10 employees and government plans.