Retirement Savings for Americans Act of 2025

This bill establishes the American Worker Retirement Plan, a new federal retirement savings program with a government match, to help working Americans build wealth. It creates a fund, an investment board, and a tax credit for contributions.

Sec. 2, Definitions: Defines key terms used in the bill, including 'account,' 'Board,' 'business,' 'earnings,' 'Executive Director,' and 'existing retirement plan' (such as 401(k)s and the Thrift Savings Plan).

Sec. 3, Relationship to Social Security: States that funds from the American Worker Retirement Fund are in addition to Social Security benefits.

Sec. 4, Government benefits: For individuals under age 65, their account funds and contributions are not counted when determining eligibility for federal public assistance benefits.

Title I, The American Worker Retirement Plan: Establishes the American Worker Retirement Fund in the U.S. Treasury. The Board sets investment policies and offers options like government securities, fixed-income, and stock index funds. Qualifying workers can enroll through their employers, and participants can contribute up to their full compensation per pay period. Former participants can withdraw funds as an annuity, single payment, or multiple payments. The Executive Director manages accounts and allocates earnings and losses. Tax treatment follows rules similar to the Thrift Savings Plan, and spousal protections and survivor rights are provided.

Title II, The American Worker Retirement Plan Investment Management System: Creates the American Worker Retirement Investment Board with five members appointed by the President and confirmed by the Senate, who have financial expertise. An Advisory Council of seven members advises the Board. The Board appoints an Executive Director to manage the fund and administer the plan. The Board develops investment policies for prudent, low-cost investments and selects asset managers, limiting any single manager to $500 billion or 10% of assets. Fiduciaries must be bonded, and the Secretary of Labor has investigative authority. Exculpatory provisions are void, and insurance may be purchased for fiduciaries. The Executive Director has subpoena authority.

Title III, Government Match Tax Credit: Creates a new tax credit for eligible individuals. The credit equals 1% of gross income plus a percentage of contributions to the Fund: 100% of the first 3% of income contributed, 50% of the next 2% (from 3% to 5% of income), and 0% above 5%. The total credit is limited to 5% of gross income.