Automatic IRA Act of 2025

This bill establishes a framework for automatic retirement savings plans, requiring most employers to automatically enroll employees in Individual Retirement Arrangements (IRAs) with the option to opt out. Employees would be automatically enrolled at 6% of their salary in the first year, increasing to 10% over time, with employers making contributions and providing default investment options. Employers who fail to implement these plans would face a $10 daily penalty per employee, though small businesses with fewer than 10 employees are exempt. The bill also creates a $500 annual tax credit for small employers to help offset implementation costs during the first three years of participation.