The Automatic IRA Act of 2025 requires most employers to set up automatic retirement savings accounts for their employees. Here's what it means in practical terms: If you work for a company with more than 10 employees, your employer will need to offer you an automatic Individual Retirement Account (IRA) where money is automatically deducted from your paycheck and deposited into a retirement savings account. You start with a 6% contribution rate that gradually increases to 10% over a few years, but you can opt out or change the amount at any time. The money goes into a Roth IRA by default, which means you pay taxes now but withdrawals in retirement are tax-free. Your employer picks the investment options, which include conservative choices that protect your money and more growth-oriented options. The law doesn't apply to very small employers (10 or fewer employees), government workers, or churches. Employers who fail to set up these arrangements face penalties of $10 per day per employee, though there are exceptions for good-faith mistakes and small violations. To help employers get started, the government will create a website with information about approved providers and investment options, and will offer a $500 tax credit to small employers for the first three years they participate. The law takes effect for most employers starting in 2028, giving them time to prepare.