Entrepreneurs and small-business owners in New York State are hoping a new state-run program will help provide them a secure retirement.
The state’s governor, Andrew M. Cuomo, wants to include the Secure Choice Savings Program in the coming budget. If adopted, employees of private sector employers would be enrolled in the program. They could opt out but research shows that once employees are enrolled in such plans, they tend to stay enrolled.
“Workers would save via payroll deductions up to the annual limits set for Roth Individual Retirement Accounts: For 2018, they are $5,500 for workers under 50, and $6,500 for those 50 and over. Single filers with income of $135,000 or more, and joint filers earning $199,000 or more, are not eligible,” writes James T. Madore for Newsday.
Forty states are examining new plans to address the lack of occupational retirement plans for private sector employees, while nine states have launched them. Most of them are similar to what is being proposed for New York State, writes Madore.
“The average Social Security payment in New York State is $16,000 per year. That’s not going to pay all your bills … people need to have other ways to save for retirement,” Beth Finkel, director of AARP New York, is quoted saying.
More: Program would cover freelancers and contractors.

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