Saving Initiatives Affecting Retirement

Obama announced new federal initiatives to have savings in retirement services. About $2 trillion in retirement savings Americans have lost in the past 2 years. Obama presented a plan that will save money and improve retirement services for employers with the 401 (k) or other retirement saving plans. 

Most Americans don't have retirement funds what they only have are the Social Security benefits. The first way to save is automatic enrollment in retirement accounts. This means that small business could easily enroll workers in 401 (k) plans or any other retirement savings plan. The IRS issued an approved automatic enrollment language that employers can use to administer their retirement plans. 

Saving tax refunds is another strategy that can be use. Workers can get their tax refunds to be deposit into IRA accounts. Not only that but workers can purchase Series I Saving Bonds that can be redeemed after five years and are withheld up to 30 years. 

Workers who received cash payments for unused sick and vacation time may be able to contribute that amount to the 401 (k) plan. These three new strategies are great way to save money for the retirement age.