Should 18-year-olds have access to workplace retirement plans like 401(k)s? If bipartisan legislation reintroduced this week in Congress becomes law, they'll be able to.
A new bill, S.3305, the Helping Young Americans Save for Retirement Act, (re)introduced this past Monday, would lower the minimum age for employees participating in workplace retirement plans, like a 401(k), from 21 to 18.
As of September 30, 2024, there were about 70 million active participants enrolled in 401(k) plans, according to the Investment Company Institute (ICI). Although a company can offer a 401(k) plan to their employees under 21 years old, many do not because of high costs and red tape.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
This bill amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986 regarding minimum participation standards for pension plans and qualified trusts.
Republican Senator Bill Cassidy of Louisiana, a co-lead sponsor of the bill, said, “Americans who don’t attend college and immediately enter the workforce should be given every chance to save for retirement, Cassidy added. "This legislation empowers American workers, giving them more opportunities to plan for a secure retirement.” Cassidy chairs the Senate Health, Education, Labor, and Pensions (HELP) Committee.
In some cases, the bill would lower the age of ERISA-covered defined contribution plans to 18 years old from the current age of 21. The bill would also remove provisions that legislators say could make covering younger workers too expensive for businesses. They might include delaying ERISA guidelines that state companies must take part in audits if they allow employees under the age of 21 to contribute to retirement plans. The legislation would also exempt 18- to 20-year-old employees from nondiscrimination testing, currently required.
Due to SECURE 2.0, younger workers are more likely to be automatically enrolled in employee retirement plans, due to lower engagement; if 18- to 20-year-olds were to qualify for plans, then those who chose not to opt in would also be automatically enrolled.
The legislation has earned endorsements from several financial services and retirement planning organizations. The list includes the Insured Retirement Institute, Edward Jones, TIAA, the American Benefits Council, Transamerica and the National Rural Electric Cooperative Association (NRECA).
Current Status (as of May 2025)
The bill was first introduced in the Senate on November 15, 2023, and referred to the Committee on Health, Education, Labor, and Pensions (HELP). As of May 16, 2025, S.3305 from the 118th Congress is likely expired due to the end of the congressional session, with no recorded advancement beyond its introduction and committee referral.
Related Content
-
Are Managed 401(k) Accounts Worth the Extra Cost?Managed 401(k) accounts are an option in an increasing number of company plans, but are they worth the additional fees vs. target-date funds?
-
A Wealth Adviser's Seven Savvy Tips on Alternative InvestmentsBefore taking the leap into investments outside the usual realm of stocks and bonds, make sure you take these seven points into consideration.
-
Are Managed 401(k) Accounts Worth the Extra Cost?
Managed 401(k) accounts are an option in an increasing number of company plans, but are they worth the additional fees vs. target-date funds?
-
What to Do After Losing Your Spouse: An Expert GuideSome financial decisions need to be made sooner rather than later. In honor of International Widows' Day, here's what you need to know about gathering documents and contacting government agencies and financial institutions.
-
I'm a Financial Planner: This Is the Key to Successful Retirement PlanningYou have to focus on what you can control — the inputs — and not obsess over what you can't control — the output. Here's how to do that.
-
Summer Is Made for Sun, Fun … and Estate Planning ConversationsNow is the time to discuss estate planning with your loved ones to ensure the Great Wealth Transfer is efficient, tax-aware and in line with your legacy goals — not Uncle Sam's.
-
Retire in Ecuador for an Affordable, Rich LifeEcuador offers one of the world’s most painless visa processes in a country rich with biodiversity.
-
Why Single Retirees Have It Better Than You ThinkFrom housing to health care, see how flying solo in retirement can stretch your funds further.
-
Don't Have an Estate Plan? Six Things That Could Go Very WrongBad things can happen when you're unprepared, such as big-time taxes and family turmoil. Generational planning can help protect the people you love. Here's some expert advice to help you out.
-
A Financial Planner's Tips for Teaching Kids About Wealth Without Creating EntitlementIf your kids are likely to inherit and you're worried about how they'll manage, start talking about money and teaching common-sense habits as soon as you can.
