MADISON, Wis. – Yesterday, State Treasurer Sarah Godlewski continued to advocate for the recommendations set forth by the Retirement Security Task Force by testifying before the Assembly Committee on Ways and Means on Assembly Bill 974, which would create 401(K)ids investment accounts for every child born or adopted in the State of Wisconsin.
“The retirement security crisis is serious, and inaction is not an option. With 401(K)ids, Wisconsin would be the first state to help our citizens start saving at birth by harnessing the power of compound interest and giving kids and their families a critical foundation,” said Treasurer Godlewski. “We know over 400,000 Wisconsin seniors will be at risk of living in poverty by 2030 and Wisconsin will have to spend an additional $3.5 billion on public assistance programs annually- that’s why we’ve got to get this done. I am proud to continue my work as Chair of the Retirement Security Task Force to push for our recommendations, like 401(K)ids, to be enacted into law.”
Bill authors Representative John Macco, Representative Evan Goyke, and Senator Janis Ringhand also testified in support of the bill. The bill also received support from the Wisconsin Alliance of Boys and Girls Clubs and UW-Extension.
“The 401(K)ids program will help Wisconsin families save, grow wealth, prevent debt, reduce racial disparities, and put our future generations – and our state – in a stronger financial position,” said Representative Goyke.
Read Treasurer Godlewski’s full testimony before the Assembly Committee on Ways and Means here.
More information on the Retirement Security Task Force is available here.
Background
The 401(K)ids program sets up an IRA-like investment account for every child born or adopted in Wisconsin. Invested and managed by the state, the individual account holder may access their savings at age 18 or older to roll the savings into a different retirement savings account, use for tuition or expenses for higher education, make a downpayment for their first home, or pay for expenses related to a medical emergency. Each account is seeded with a modest investment from the state, and the account holder, family members, friends, philanthropic or business groups can also contribute to the account. The framework for this legislation was provided by the Governor’s Retirement Security Task Force, chaired by State Treasurer Sarah Godlewski.
