Bill paves the way for creation of ‘Maine Retirement Savings Program’

Published: Oct. 13, 2021 at 6:13 PM EDT
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AUGUSTA, Maine (WABI) - State leaders spoke at a virtual event Wednesday to celebrate the passage of LD 1622.

The bill paves the way for the creation of the “Maine Retirement Savings Program,” a way for working Mainers to contribute to a Roth IRA directly from their paycheck.

It allows employers who don’t offer their own retirement savings plans to instead facilitate a deduction for the employee from the employee’s paycheck.

The deducted funds go into a Roth IRA which follows those enrolled in the program from job to job until that person is ready to retire.

”The whole premise here is to make it simple and automatic, so that in fact people will start to save. They’ll start to see that they’re building a cushion for their future, and that in itself will provide them incentive to keep going,” said Sen. Eloise Vitelli, D-Arrowsic.

According to data from AARP, approximately 46% of private-sector workers in Maine don’t currently have access to an employer-sponsored retirement savings program.

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