Automatic IRA Act of 2025

(a) Preemption of State law. This Act, and the amendments made thereby, shall supersede any law of a State which would directly or indirectly prohibit or restrict an automatic IRA arrangement (as defined in section 414(dd)(8) of the Internal Revenue Code of 1986).

(b) Employers maintaining automatic IRA arrangement

(1) In general. Any employer maintaining such an arrangement shall not be subject to any requirement imposed by a State or political subdivision thereof to facilitate a payroll deduction savings program of a State or political subdivision thereof.

(2) Qualified State law exception. Paragraph (1) shall not apply with respect to any employer to the extent that such employer facilitates an arrangement under a qualified State law (as defined in section 4980J(f)(3) of the Internal Revenue Code of 1986) for employees with respect to whom such qualified State law applies.