Automatic IRA Act of 2024

The Automatic IRA Act of 2024 would require most employers (with more than 10 employees) to automatically enroll workers in retirement savings plans with default contribution rates starting at 6% and increasing to 10% over time. The bill establishes default investment options that protect principal and requires employers to provide clear notice about the retirement plan options to employees. Employers who fail to implement these automatic retirement plans would face a $10 daily penalty, while small employers would receive a $500 annual tax credit for the first three years of offering these plans. The law would apply to plan years beginning after December 31, 2026, with the tax credit effective for taxable years beginning after December 31, 2024.