Iowa 2025-2026 Regular Session

Iowa House Bill HF2373

Introduced
2/10/26  

Caption

A bill for an act establishing a retirement savings plan trust, providing penalties, and including implementation provisions.

Impact

The bill is expected to significantly impact state laws regarding employment and retirement security. It requires employers, based on their employee count, to establish a payroll deduction system to facilitate these contributions. In its phased rollout, it will apply first to larger employers before expanding to smaller businesses. This incremental approach aims to ease the transition for various types of businesses and promote wider participation in retirement savings among employees.

Summary

House File 2373 establishes the Iowa Retirement Savings Plan Trust with the aim of assisting residents in saving for retirement. The bill mandates that individuals employed in Iowa must be automatically enrolled into the trust through their employers, who will set a default contribution rate. Participants maintain the option to opt out or adjust their contribution rates. The trust is designed to meet federal tax requirements so that contributions are treated favorably under the Internal Revenue Code.

Contention

Discussion surrounding HF 2373 includes its implications for employer responsibilities and the management of the trust. While proponents assert it will alleviate concerns about retirement readiness among Iowans and enhance financial security, critics may express concerns over the administrative burden on smaller employers and the potential regulatory complexities introduced by the trust. The bill also does not guarantee a specific rate of return on contributions, which could be a point of contention for participants seeking assurance on their investments.

Companion Bills

No companion bills found.

Previously Filed As

IA SF185

A bill for an act establishing a retirement savings plan trust, and including implementation provisions.

IA SSB1234

A bill for an act establishing a retirement savings plan trust, making appropriations, and including implementation provisions.

IA HF726

A bill for an act providing for the implementation of battery stewardship plans, making appropriations, and providing penalties.

IA SSB1196

A bill for an act providing for the implementation of battery stewardship plans, making appropriations, and providing penalties.(See SF 545, SF 2477.)

IA HF721

A bill for an act relating to the consideration of nonfinancial factors in providing financial services, including actions regarding the economic interest of enterprise shareholders and participants in and beneficiaries of public pension benefit plans, and providing penalties.

IA SF2477

A bill for an act providing for the implementation of battery stewardship plans, making appropriations, and providing penalties.(Formerly SF 545, SSB 1196.)

IA SF545

A bill for an act providing for the implementation of battery stewardship plans, making appropriations, and providing penalties.(Formerly SSB 1196; See SF 2477.)

IA HF2332

A bill for an act relating to elective abortion and feticide, providing penalties, and including effective date provisions.

IA HF2718

A bill for an act relating to the seizure of firearms, providing penalties, and including effective date provisions.(Formerly HF 430.)

IA HF2737

A bill for an act relating to the education savings account program, including modifying eligibility provisions, providing a future repeal date, and including effective date and applicability provisions.

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