Helping Young Americans Save for Retirement Act

Key Points

• This bill would lower the minimum age for joining an employer-sponsored retirement plan (like a 401(k)) from 21 to 18. Currently, federal law lets companies exclude workers under 21 from their pension or retirement savings plans. This change means younger workers could start saving as soon as they enter the workforce.
• Part-time workers would also benefit. Employees who work at least 500 hours per year for two consecutive years and have reached age 18 would qualify to join their employer's retirement plan, expanding access for younger workers in part-time or gig-adjacent roles.
• To ease the burden on small businesses, the bill includes a five-year grace period during which newly eligible young participants would not count toward the participant threshold that triggers expensive independent audit requirements for retirement plans.
• The bill is bipartisan, introduced by Rep. Pettersen and Rep. Rulli. It was referred to both the Committee on Ways and Means and the Committee on Education and Workforce.
• If enacted, these changes would take effect for plan years beginning one year or more after the bill becomes law, giving employers time to update their plans, payroll systems, and administrative processes.