[Ed. – More meaningless sleight of hand? Or a signal? “If you like your retirement plan… SUCKERRRRR!!!”]
President Barack Obama will unveil a new program in his State of the Union address Tuesday night for workers whose employers do not offer retirement plans, according to a person who has discussed the proposal with the Treasury Department.
Under the program, these workers would be able to deduct a percentage of their paycheck to purchase Treasury bonds. Once the individual has invested enough money in the bonds, the account would be turned into an IRA.
“It’s a starter-IRA program for folks who aren’t covered by a 401(k) in their workplace,” said Brian Graff, CEO of American Society of Pension Professionals & Actuaries, who has spoken with Treasury about the plan.
The Treasury Department declined to comment.
The proposal does not require legislative action, and Graff said it underscores how Obama will seek to use his executive power to implement an agenda and avoid having to go through Congress.