Retirement Savings for Americans Act of 2025

The Retirement Savings for Americans Act of 2025 establishes the American Worker Retirement Plan , creating a new federal retirement savings program to enhance the financial security of working Americans. This plan aims to facilitate wealth accumulation, particularly for those not currently covered by an existing retirement plan. It operates through the American Worker Retirement Fund , established in the U.S. Treasury, which holds participant contributions and government matching funds. Eligibility for the plan extends to "qualifying workers," defined as employees whose businesses do not offer an existing retirement plan or independent contractors without such plans. These workers are subject to auto-enrollment at a default contribution rate of 3% of their compensation, though they retain the option to opt out. Participating employers face penalties for failing to enroll eligible workers or deposit contributions. Participants can make contributions, including catch-up contributions and contributions from tax refunds, up to limits similar to Roth IRAs. A key feature is the Government Match Tax Credit , which directly contributes funds to a participant's account. This credit includes 1% of the individual's gross income, plus a percentage match on their contributions, with a 100% match for the first 3% of gross income and a 50% match for contributions between 3% and 5% of gross income, subject to income-based phase-outs. The plan offers various investment options, including government securities, fixed-income, and several stock index funds, as well as age-appropriate Life-Cycle Investment Funds as a default. A new American Worker Retirement Investment Board , composed of five members with financial expertise, is established to set investment policies, administer the fund, and oversee an Executive Director. The Board is also responsible for developing financial literacy requirements for participants. Participants can access their funds through various distribution options upon becoming a "former participant," including annuities, single payments, or multiple payments, and can transfer funds to other retirement plans. Loans and hardship withdrawals are also permitted under specific conditions, with spousal protections in place. All contributions are fully nonforfeitable, and the plan's tax treatment generally aligns with rules similar to the Thrift Savings Fund.