Legislation6 days ago
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To authorize implementation grants to community-based nonprofits to operate one-stop reentry centers.
HR8548Rep. Kamlager-Dove, Sydney [D-CA-37] (D-CA)
introduced
HR2696119th CongressWALLET
Retirement Savings for Americans Act of 2025
Sponsored By: Representative Smucker
Introduced
Summary
Creates a new federal retirement savings program that would automatically enroll private-sector workers into individual accounts, pair contributions with a Government match, and place assets in a fiduciary-managed trust.
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- Workers and families: Auto-enrollment defaults to 3% of pay with an opt-out. Participants can contribute up to their pay each period, use catch-up contributions, access loans and withdrawals under set rules, and earn a Government Match Credit that fully matches up to 3% of income and partially matches contributions from 3% to 5%.
- Employers: Employers would have to enroll workers and deposit contributions or face tiered penalties and lost-earnings payments, rising to a maximum 10% penalty for the longest delays.
- Governance and protections: A five-member American Worker Retirement Investment Board would set investment policy, offer indexed and life-cycle funds, and cap any single asset manager at the greater of $500 billion or 10% of Fund assets. Accounts would sit in a nonforfeitable trust owned by participants and include spousal protections modeled on the Thrift Savings Plan.
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 3 benefits, 0 costs, 4 mixed.
New government match for retirement
For tax years after December 31, 2024, you could get a new retirement tax credit. It would equal 1% of your gross income plus a match on what you put in. The match is 100% on contributions up to 3% of income, and 50% from 3% to 5%. A cap equal to 5% of a phaseout amount based on national median personal income would apply, and the cap drops by $75 for each $1,000 over that amount. The phaseout amount would be about 2x the median for joint filers, 1.5x for heads of household, and 1x for others. The IRS could pay part of the credit in advance using last year’s income and would deposit payments into your Fund account. If you pull out the related contribution within 6 months, you could lose the credit.
Fiduciary rules to protect savers
People who run the Fund would have to act only in participants’ interests. They would need to invest prudently, diversify, and use money only for benefits and reasonable costs. Deals with interested parties would be barred unless fairly priced, and fiduciaries would need bonds. The Labor Department could audit, fine violators 5% per year (up to 100% if not fixed), and take cases to court.
National retirement fund and investments
This would set up a national Fund at Treasury to hold and invest workers’ contributions and government credits. Money would stay available without yearly limits to invest, pay costs, make distributions, make loans, and buy insurance. Investment options would include government bonds, index funds, and life‑cycle funds. If you do not choose, your money would default to an age‑based life‑cycle fund, and you could change options at least twice a year. No single manager could run more than the greater of $500 billion or 10% of assets, and contracts would last up to five years. The Fund would not exercise voting rights on the securities it owns.
Loans and withdrawals from your account
You could borrow against the part of your balance that came from your own contributions. The Fund would give a written cost disclosure before any loan, and loans must meet tax rules and spousal protections. You could withdraw after age 59½ or for hardship, subject to rules; hardship withdrawals are limited to your own contributions. Former participants could pick an annuity, a lump sum, equal annual payments, a rollover to another plan, or a mix. If your gross income for a year is over the IRS 414(q)(1)(B) threshold, the Fund would make an involuntary distribution of that year’s contributions, with a notice within 7 days and 30 days to roll over; if you do nothing, it would be sent to you and may be treated as an early distribution for tax purposes.
Automatic 3% enrollment and employer penalties
Employers would need to enroll qualifying workers in the new Fund within one year. Workers would be auto‑enrolled at a 3% contribution rate but could opt out. Employers could choose to enroll qualifying independent contractors without changing their legal status. If an employer misses enrollments or deposits, penalties would be 2% if up to 5 days late, 5% if 6–15 days, and 10% after 15 days. Employers would also owe lost earnings caused by their errors.
Roth-style retirement accounts for workers
Each participant would have an individual account in the Fund. Your balance would include your contributions, government match credits, and your share of earnings or losses, minus costs and withdrawals. Your contributions would be taxed when made and not deductible, like a Roth. You could contribute up to your pay for the period, make catch‑up contributions allowed by law, and send part of a tax refund into your account.
Independent board to run the Fund
A five‑member board, appointed by the President with Senate approval, would oversee the Fund and meet monthly. A seven‑member advisory council would give advice. The Board would appoint an Executive Director to run daily operations and could issue subpoenas for records, with court enforcement and legal immunity for good‑faith compliance. Board members would be paid at the daily Level IV rate and reimbursed for travel, with costs paid from Fund earnings. The Board’s budget would appear as a separate item in the President’s budget.
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Sponsors & CoSponsors
Sponsor
Smucker
PA • R
Cosponsors
Rep. Sewell, Terri A. [D-AL-7]
AL • D
Sponsored 4/7/2025
Malliotakis
NY • R
Sponsored 4/7/2025
Tenney
NY • R
Sponsored 4/7/2025
Rep. Fitzpatrick, Brian K. [R-PA-1]
PA • R
Sponsored 4/7/2025
Miller (WV)
WV • R
Sponsored 4/7/2025
Rep. Smith, Adrian [R-NE-3]
NE • R
Sponsored 4/7/2025
Rep. Swalwell, Eric [D-CA-14]
CA • D
Sponsored 3/4/2026
Rep. Carey, Mike [R-OH-15]
OH • R
Sponsored 3/18/2026
Roll Call Votes
No roll call votes available for this bill.
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