# 119-hr-6722: Automatic IRA Act of 2025 119-hr-6722, Automatic IRA Act of 2025, is a 119th Congress bill sponsored by Rep. Neal, Richard E. [D-MA-1] (D-MA); status introduced; PRIA reads it as touching household money (as of 2026-09-18). - Canonical: https://policyrisk.com/legislation/119-hr-6722 - As of: 2026-09-18 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: 119-hr-6722 - Congress: 119 - Title: Automatic IRA Act of 2025 - Status: introduced - Introduced: 2025-12-15 - Sponsor: Rep. Neal, Richard E. [D-MA-1] (D-MA) - Cosponsors: 4 - Policy area: Taxation - Touches household money: yes - Last recorded action: 2026-09-18 ## Summary **This bill would create a national framework for employer‑facilitated automatic retirement savings by requiring payroll‑deduction automatic contribution plans and automatic IRA arrangements.** It sets rules on eligibility, default contributions, investments, fees, lifetime income options, employer duties, and enforcement. ## Cosponsors (4) - Rep. Davis, Danny K. [D-IL-7] (D-IL), 2026-01-08T00:00:00.000Z - Rep. Sánchez, Linda T. [D-CA-38] (D-CA), 2026-01-08T00:00:00.000Z - Rep. Vindman, Eugene Simon [D-VA-7] (D-VA), 2026-08-27T00:00:00.000Z - Rep. Mannion, John W. [D-NY-22] (D-NY), 2026-09-16T00:00:00.000Z ## Provisions PRIA read - Small employers $500 IRA credit: benefit, high. If enacted, eligible small employers could claim a $500 tax credit for each taxable year for up to three years when they start an approved automatic IRA arrangement. To qualify, an employer must not have had an eligible employer plan in the two prior calendar years. The credit applies to taxable ye… - Ban on unreasonable non-ERISA fees: benefit, medium. If enacted, plans and arrangements not covered by Title I of ERISA could not charge participants, beneficiaries, employers, or IRAs "unreasonable fees or expenses." The rule would apply to non-Title I vehicles covered by the bill and start for plan years beginning after December 31, 2027. - Automatic payroll IRAs and investments: benefit, medium. If enacted, employers could automatically put pay into an employee's IRA by payroll deduction and would have to send those deposits by the last day of the month after pay. Absent an employee election, the IRA would be treated as a Roth by default unless the employee timely chooses otherwise. Employ… - Default contribution rates and eligibility: benefit, medium. If enacted, eligible employees would be auto-enrolled at a uniform percent of pay. The rate is at least 6% in the initial period, then 7%, 8%, 9%, and 10% in later years, and may not exceed 15% (with a 10% cap during the initial period). Most employees must be eligible, but employers could exclude… - Which plans count as automatic: benefit, medium. If enacted, the bill would define which employer savings vehicles qualify as an "automatic contribution plan or arrangement." This would include certain defined contribution plans, new automatic IRA arrangements, some 408(p) arrangements, and certain employer plans that already exist. To count, the… - Model notices and certified providers: benefit, medium. If enacted, the Secretary would publish plain-language model notices and enrollment forms and run a website with standardized fee and investment information. Providers could be certified and listed on that site, and employers could pick only listed providers. Employers must also tell workers they c… - New lifetime-income payout option: benefit, low. If enacted, many automatic plans would have to let participants take at least 50% of their vested balance as lifetime income. That requirement would not apply if the vested account balance is $200,000 or less at distribution. Treating the $200,000 exception would not by itself cause nondiscriminati… - Penalties, caps, and PEO rules: mixed, medium. If enacted, employers who fail to maintain or facilitate required automatic arrangements could face an excise tax of $10 per day for each affected employee, with that amount inflation-adjusted after 2028. The noncompliance period ends when corrected or after three months. The bill also sets excepti… - Federal preemption of state IRA rules: mixed, medium. If enacted, federal law would override state laws that block or limit automatic IRA arrangements and would generally free employers from state or local requirements to run a state payroll-deduction savings program. The bill preserves State laws enacted before January 1, 2028 that require certain em… ## Related bills - 119-hr-7973: Momnibus Act - 119-hr-7481: Department of Homeland Security Appropriations Act, 2026 - 119-hr-6900: American Affordability Act of 2025 - 119-hr-51: Washington, D.C. Admission Act - 119-hr-20: Richard L. Trumka Protecting the Right to Organize Act of 2025 - 119-hr-15: Equality Act ## Sources - [119-hr-6722 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/6722) ## Related - [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973) - [119-hr-7481: Department of Homeland Security Appropriations Act, 2026](https://policyrisk.com/legislation/119-hr-7481) - [119-hr-6900: American Affordability Act of 2025](https://policyrisk.com/legislation/119-hr-6900) - [119-hr-51: Washington, D.C. Admission Act](https://policyrisk.com/legislation/119-hr-51) - [119-hr-20: Richard L. Trumka Protecting the Right to Organize Act of 2025](https://policyrisk.com/legislation/119-hr-20) - [119-hr-15: Equality Act](https://policyrisk.com/legislation/119-hr-15) - [All bills in Congress](https://policyrisk.com/legislation) Source: PRIA, https://policyrisk.com/legislation/119-hr-6722 (as of 2026-09-18).