Rep. Benjamin L. Cardin, D-Md., introduced the Pension Preservation and Savings Expansion Act April 28. The legislation, designed to help employees save more for retirement and have more control over their savings, would repeal the Roth 401(k) plan. Mr. Cardin changed his mind about Roth 401(k) plans, scheduled to take effect next year. Mr. Cardin now feels there is no need for the plans.
His proposal would permanently expand the SAVERS credit for low- and moderate-income workers and make it refundable; it's due to expire next year.
The bill also would protect from non-discrimination rules employers that automatically enroll all their workers in retirement plans; direct the Labor Department to offer guidance on appropriate default investments for employee contributions; and allow workers to automatically direct tax refunds into their IRAs.