Americans can expect their 401K to benefit from the federal spending package.
"The overall goal of this legislation is to help more Americans feel secure when they are preparing for retirement and also for the rest of their financial needs," said Shai Akabas of the Bipartisan Policy Center.
Under the legislation, any eligible workers will be automatically enrolled in their employer-sponsored plan at a 3% contribution.
Part-time workers will also be allowed to make contributions for the first time.
The bill simplifies the saver's credit so more people can use it.
"That would mean it's fully available to people all of the way down the income distribution. Right now, it's not refundable so if people don't owe federal income taxes, then they can't take advantage of the credit," Akabas said.
Akabas adds that anyone who has earnings low enough to qualify can make contributions up to $2,000 into their retirement accounts, which would be matched to a certain amount.
"That is a meaningful contribution to their retirement that will be made through the tax code if they make those retirement contributions," he said.
The federal spending package passed the Senate on Thursday. It still needs to pass the House and be signed by President Joe Biden.