In this past weekend’s radio address, President Obama talked about new initiatives for retirement savings. Allow me to summarize, and then offer my comments;
- Allow small businesses to automatically enroll workers in 401(k) plans.
- Offer an option to receive your tax refund as a saving bond.
- Allow employees to put payments for unused sick or vacation time into their 401(k) account.
- IRS and Treasury to offer a guide to inform people how to rollover their accounts when changing employers.
I’m sorry to say, I see nothing here of value. What will put more money in our pockets or help stabilize the financial markets? The third list item only impacts a worker changing jobs, and at time when they are most likely to need the cash. Note – this is not the worker’s 401(k) money, just the pay for unused vacation and /or sick time. I have higher hopes to see changes that will actually have an impact.