By Sahid Fawaz
Workers in New York without a retirement plan just got some good news.
“New York has become the latest state to give the nod to a retirement savings program for workers who lack access to one where they work.
Endorsed by the state legislature on Saturday via approval of its fiscal 2019 budget, the program would be similar to others cropping up around the country that provide private sector workers with a tax-advantaged retirement account if their employer does not offer one.
The budget authorizes the creation of the New York Secure Choice Savings Program. While details are slim — a state board would be charged with working out the specifics — participation would be voluntary for both businesses and workers. Employees who choose to enroll would be able to direct part of their paycheck to a Roth IRA.
While contributions to Roth IRAs are not tax-deductible, the assets grow tax-free and withdrawals in retirement generally also are untaxed.
Since 2012, more than 40 states have acted to implement or consider legislation to create such state-run retirement programs, according to Georgetown University’s Center for Retirement Initiatives.
Across the country, an estimated 57 million private sector workers are employed at companies that do not offer a 401(k) plan or similar retirement plan, according to AARP. In New York, the program potentially could help about 3.5 million such workers.”
For the rest of the story, visit CNBC.