The 7 biggest changes proposed for 401(k) and other retirement plans

For workers earning less than $71,000 per year, the federal government will provide a 50 percent match for the first $2,000 in employee cash contributions, meaning the government will provide a maximum of $1,000. This cash will be deposited directly into the pension accounts. Under current law, the matching program is a tax credit — but it doesn’t help low-wage workers who don’t owe taxes.

“This is a big deal,”[ads1]; Hansen said. “It will help current savers save more and bring newer people into the system, knowing there is a government match.”