This is the Cato Daily Podcast for Thursday, September 29th, 2022.

I'm Caleb Brown.

Members of Congress would like many lower-income Americans to save more.

Some of that new savings would be subsidized by every other taxpayer.

That's just one element being pondered in what's termed the Earn Act in Congress.

Cato's Romina Batcha discusses what else is in there.

There are numerous retirement accounts that you can get.

Through an employer, you can get a 401k, a 403b.

You can on your own get an IRA. The Health Savings Account is perhaps the best

retirement savings vehicle out there.

What does the Earn Act do with respect

to retirement savings and encouraging people to do it?

Caleb, I wish this was an easy question to answer, but the Earn Act has become so convoluted

and packed full of a variety of provisions that it's hard for me to say just one thing. It makes a number of changes to retirement

accounts, particularly 401ks and the non- nonprofit alternative 403b's.

One of the things it does that will be helpful for many older Americans

is to increase the retirement account contributions that Americans age 60 to 63 are allowed to make up to

$10,000 from a current $6,000 limit.

It also allows for delaying required distributions, which means that individuals can

keep their money in retirement accounts longer if they don't need to withdraw it,

immediately it moves that age from 72 to 75.

But there's also a variety of provisions

...