I do not support the proposed revisions to the 401k and IRA’s law because they fail to deal with major issues in the current administration of these plans. The first issue has been that employers default the administration of their 401k plans to product vendors like insurance and investment firms. Their failure to take a active role in oversight of their 401K plan administration means that employees get vendor biased advice on investment options and cost. By design theses plans have been a very good benefit for high wage employees who seek tax savings along investment returns. Many hourly wage do not benefit nearly as much from either a 401k or IRA. Lower wage employees have typically not participated in either 401k or IRA because frequently companies provide no match or a very low matching contribution and they won’t get a real benefit from a tax reduction.
I think we need to require that for profit companies with annual earnings above 75 million to offer a qualified 401k plan where they hold fiduciary responsibility for the plan. We need to require private for profit companies to accept responsibility for providing a real retirement plan benefit not just a 401K or IRA savings plan.