Retirement Savings for Americans Act of 2025

Summary

Creates a new federal retirement savings system that gives workers without employer-provided plans an individual account in a Treasury-managed fund, with a presidentially appointed investment board to oversee investments and administration. The plan pairs participant contributions with a refundable federal tax credit that matches contributions tiered up to 5% of income, protects account balances from many creditor actions, excludes account balances from federal public assistance asset tests for people under 65, and directs how funds may be used and governed.

• Establishes the American Worker Retirement Fund (AWRF) with individual Treasury-held accounts for eligible workers without access to employer plans.
• Creates a five-member presidentially appointed, Senate-confirmed investment board to oversee the Fund and hire an Executive Director.
• Provides a refundable federal tax credit that both gives 1% of gross income and matches participant contributions (100% up to 3% of income; 50% for 3–5%).
• AWRF contributions and earnings are immediately nonforfeitable and largely protected from creditor claims, but are subject to child support, certain payments, and tax levies.
• Account balances are excluded from federal public assistance asset tests for individuals under age 65 so eligibility for benefits is not reduced by AWRF holdings.
• Fund administrative expenses may be paid from net earnings; forfeited advance credits (if funds withdrawn within six months) return to the Treasury general fund.
• Tax credit rules include advance payments and reconciliation; the credit becomes effective for taxable years after Dec 31, 2024.
• Board must implement financial literacy interventions before permitting certain early withdrawals or loans.
• Contributions to AWRF are ineligible for the existing Savers’ Credit under current law.