President Clinton's new Universal Savings Accounts would let employees direct a government match into their employer-sponsored retirement plans, a top administration official said.
Knowledgeable insiders say the government match would apply to employee contributions to 401(k), 403(b), 457, SIMPLE and simplified employee pension plans. Less clear, however, is whether IRAs would qualify.
Details of the USA program are expected to be contained in the fiscal 2000 federal budget Mr. Clinton sends to Congress Feb. 1, sources said.
Under Mr. Clinton's proposal, workers making up to $40,000 a year would qualify for a $100 subsidy and up to $300 in matching dollars for every $600 they contribute annually to the new accounts.