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States Working to Create IRAs for Small Business Employees

Approximately half of state governments are working to enable employees to participate in a government-sponsored, automatic-payroll-deduction Individual Retirement Account (IRA) if their employer doesn't provide a retirement plan for them. 

California, Illinois, Oregon and Washington state have taken the lead, passing legislation to launch Secure Choice Pension programs. California and Illinois both aim to begin enrolling workers in 2017.

Employees would contribute through payroll deductions to Secure Choice Pension accounts. The plan’s investments would be professionally managed, but no employer contributions would be required. — Mark Miller, Reuters

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