A Democratic bill with 4 Democratic cosponsors · See all 4 cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Automatic IRA Act of 2025 aims to amend the Internal Revenue Code of 1986 to establish rules for automatic contribution retirement plans and arrangements. It defines specific requirements for these plans, including notice, eligibility, contribution, investment, and fee standards. The bill provides for automatic IRA arrangements where employees are treated as having elected to contribute a specific percentage of their compensation. To assist certain businesses, it includes a credit for small employers who implement these arrangements. Additionally, the act establishes an Automatic IRA Advisory Group to assist in the administration of these programs. Finally, it includes provisions regarding the treatment of these arrangements under various State laws.
Yes· 3 of 17
- Scored +6
Does this cut taxes for small businesses?
Provides a $500 annual tax credit to eligible small employers who set up automatic IRA arrangements.
- Scored +5
Would people in their twenties and thirties be better off under this?
Encourages early and automatic participation in retirement savings plans.
- Scored +5
Would people in middle age be better off under this?
Helps middle-aged workers build additional retirement assets through automated payroll deductions.
The opposite
- Scored -3
Would business owners be better off under this?
Mandates participation and can impose administrative burdens and potential penalties on compliant employers.
- Scored -2
Does this leave more decisions to the states?
Supersedes certain State laws regarding automatic IRA and payroll deduction programs.
Who it would affect, and how
Potential Positive Impacts for People
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Automatic Savings for Employees: The bill establishes "automatic contribution plan or arrangement" rules, which means employees are treated as having elected to have contributions made to their retirement accounts unless they make an affirmative election to opt out or change the amount (Section 2(a)(4)).
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Access to Retirement for Non-Employees: The Secretary of the Treasury is tasked with providing regulations or guidance to make automatic IRAs available to individuals who provide services that do not constitute traditional employment (Section 2(a)(3)(E)).
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Tax Credits for Small Businesses: Small employers who facilitate certain automatic IRA arrangements can receive a $500 credit for the first three calendar years of participation (Section 3(a)).
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Standardized Information for Savers: The Secretary is required to establish a website that provides small employers and individuals with standardized, easy-to-compare information regarding fees, expenses, investment options, and returns (Section 2(a)(8)(G)(iii)).
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Protection Against Excessive Fees: For plans not subject to the Employee Retirement Income Security Act of 1974, the law prohibits participants, beneficiaries, or employers from being charged unreasonable fees or expenses (Section 2(a)(6)).
Potential Negative Impacts for People
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Financial Penalties for Employers: Employers who fail to maintain or facilitate an automatic contribution plan or arrangement may be subject to a tax of $10 for each day of noncompliance (Section 2(b)(1)).
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Mandatory Contribution Percentages: Employees are treated as having elected to contribute a "qualified percentage" of their compensation, which starts at 6 percent and increases in subsequent years up to 15 percent (Section 2(a)(4)(C)).
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Age and Service Restrictions: Certain employees, such as those under the age of 21 for some plans or those who have not completed specific service requirements, may be excluded from participating in these automatic arrangements (Section 2(a)(3)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — Expands retirement plan access to lower-income workers who often lack workplace pension options. Would people in middle age be better off under this? — Helps middle-aged workers build additional retirement assets through automated payroll deductions. Would middle-income households be better off under this? — Facilitates structured savings and default target-date investments for middle-class workers. Would people in their twenties and thirties be better off under this? — Encourages early and automatic participation in retirement savings plans. Would Black Americans be better off under this? — Broadens financial security tools for minority populations with lower traditional retirement plan coverage. Would Hispanic Americans be better off under this? — Expands workplace retirement savings access for demographic groups with lower coverage rates. Would retired people be better off under this? — Supports overall long-term systemic improvement in retirement savings adequacy. Would people over 65 be better off under this? — Promotes long-term financial preparedness and additional wealth accumulation before retirement. Would women be better off under this? — Helps address coverage gaps and assists women in building greater retirement security. Would business owners be better off under this? — Mandates participation and can impose administrative burdens and potential penalties on compliant employers.
- Economy And Finance
- Does this cut taxes for small businesses? — Provides a $500 annual tax credit to eligible small employers who set up automatic IRA arrangements. Does this give people more protection from unfair business practices? — Establishes clear fee regulations and default target-date investment options for savers. Does this make it easier to run a small business? — Includes tax credits and structured guidance to help small businesses implement retirement arrangements. Is this likely to grow the economy? — Promotes increased personal savings and long-term capital formation. Is this likely to create jobs? — Encourages broader coverage of retirement plans through workplace mechanisms.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — Requires standardized website disclosure of fees, investment returns, and options for automatic IRAs. Does this give the federal government more power? — Imposes federal standards and automatic contribution mandates on employers regarding retirement accounts. Does this leave more decisions to the states? — Supersedes certain State laws regarding automatic IRA and payroll deduction programs.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — Helps lower- and middle-income workers build long-term financial security and retirement savings.
- 9/16/2026
- 1 Cosponsor added.
- 8/27/2026
- 1 Cosponsor added.
- 1/8/2026
- 2 Cosponsors added.
- 12/15/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House
Danny DavisDemocrat · Illinois
John MannionDemocrat · New York
Linda SánchezDemocrat · California
Eugene VindmanDemocrat · Virginia