"First, we would require every firm (with possible exceptions for the smallest businesses) to enroll its new workers automatically in at least one plan: a traditional defined benefit plan, a 401(k), or an IRA. Businesses also would be required to set various features of the plans in a "pro-saving" manner, although workers always would have the option to override those "pro-saving" defaults. Second, our proposal would replace current tax deductions for contributions to tax-preferred retirement accounts with a new program providing universal matching contributions from the government for household deposits to 401(k)s and IRAs. Unlike the current system under which low-income households enjoy much weaker immediate incentives to contribute than high-income households, all households making a qualified contribution to a 401(k) or IRA would receive the same 30 percent match from the government. We also propose other changes to the retirement system to promote lifetime annuities." Source: The Brookings Institution (Hamilton Project)
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