ILLINOIS (IRN) – Financial advisers will be lobbying Congress this week on 401(k) plans for employees of small businesses.
The 401(k) accounts many rely on now are complex, require an outside administrator, and as a result are not cost-effective for some small businesses to set up for their workers.
Tom Iorio, an Edward Jones financial adviser in Rantoul, Ill., says they’re lobbying for a program for small companies.
“There are several bills out there in Congress that are trying to incentive small businesses to more easily get into what we think of as the traditional 401(k) market, like a small 401(k) or a ‘simple 401(k)’ is really the term that they’re using,” he says.
In a 401(k) program, employees may make tax-free contributions and select their investments within a plan that is administered on behalf of the employer. Employers also can contribute to employees’ accounts.
Edward Jones representatives are also pushing for a law to make enrollment in 401(k) plans automatic, unless employees opt-out.
Iorio says he’ll be meeting with both U.S. senators, as well as the three Illinois members of the House Committee on Banking and Financial Services: Reps. Robert J. Dold (R-Kenilworth), Bill Foster (D-Naperville) and Randall M. Hultgren (R-Winfield).