by Gerald E. Scorse \/ December 20th, 2017<\/p>\n
Congress created individual retirement accounts (IRAs) in 1974. Four years later it added 401(k)s. A third variety, Roth IRAs, won approval in 1997. Together the accounts dominate America\u2019s private retirement system.<\/p>\n
Today we\u2019re a hugely unequal society. Updating our private system could reduce inequality, and help make the golden years golden for all Americans.<\/p>\n
Let\u2019s begin with the millions of workers we\u2019re not even giving a chance:<\/p>\n
The 1974 bill aimed to provide a workplace retirement plan for all private-sector employees not otherwise covered. Forty-three years later over 70 million workers<\/a>, mostly low- to middle-income, still lack a workplace option.<\/p>\n They deserve at least two. One would be a broad stock market index fund like the S&P 500. For savers who put safety first, the other would be a bond fund holding only Treasury debt. Enrollment would be automatic with an opt-out provision. Pre-tax contributions would be made via payroll deductions. Gains would accrue tax-free, taxes payable on withdrawal (the same as all current accounts except Roths).<\/p>\n States could set up accounts on their own (as Oregon already has<\/a>), but Congress could do the job in a single stroke. Both 2008 presidential candidates, Senator John McCain (R-NV) and Barack Obama, endorsed a federal Automatic IRA plan<\/a>. Obama later included the idea<\/a> in a budget outline, but it never went any farther.<\/p>\n It should have. Well into the 21st century, private…<\/p>\n<\/div>\n