To amend the Internal Revenue Code of 1986 to establish an exception for multiemployer plan participants to the requirements for automatic enrollment.
Summary
H.R. 6685 proposes an amendment to Section 414A(c)(3) of the Internal Revenue Code of 1986. The amendment aims to create an exception for multiemployer plan participants from automatic enrollment requirements in certain retirement plans. This bill was introduced in the House of Representatives on December 12, 2025, and referred to the Committee on Ways and Means.
Expected Effects
The bill, if enacted, would modify the Internal Revenue Code to exclude multiemployer plans from the automatic enrollment mandates that apply to other types of retirement plans. This change would give multiemployer plan participants the option to not be automatically enrolled. The amendments would apply to taxable years beginning after December 31, 2024.
Potential Benefits
- Potentially gives multiemployer plan participants more control over their retirement savings.
- Could reduce administrative burdens for multiemployer plans by removing the need for automatic enrollment processes.
- May allow individuals to make more informed decisions about their retirement contributions based on their specific circumstances.
- Could lead to increased participation in retirement plans if individuals feel more in control of their enrollment.
- May simplify retirement planning for individuals who participate in multiple retirement plans.
Most Benefited Areas:
Potential Disadvantages
- Could lead to decreased retirement savings for some individuals if they opt out of automatic enrollment and do not actively enroll later.
- May disproportionately affect lower-income workers who may not actively enroll without automatic enrollment.
- Could increase the risk of inadequate retirement savings for some participants.
- Might create confusion among participants about their enrollment options.
- Potential for reduced overall participation rates in multiemployer retirement plans.
Constitutional Alignment
The bill appears to align with the general principles of Congress's power to tax and regulate commerce, as outlined in Article I, Section 8 of the Constitution. Specifically, Congress has the power to lay and collect taxes, duties, imposts, and excises, and to regulate commerce with foreign nations, and among the several states, and with the Indian tribes. This bill relates to the regulation of retirement plans, which falls under Congress's authority to regulate commerce and enact laws necessary and proper for carrying out its enumerated powers.
Furthermore, the bill does not appear to infringe upon any specific individual rights or liberties protected by the Bill of Rights. It does not establish a religion, infringe upon freedom of speech, or violate any other constitutional protections.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).