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Congress·In Committee·H.R. 2696

Rep. Smucker Pushes Bill to Give Millions of Workers Retirement Accounts with a Government Match

Retirement Savings for Americans Act of 2025

12 months ago·View on Congress.gov

Legislative Progress

House
Senate
President
Law

Key Points

  • This bill creates a brand-new national retirement savings program called the American Worker Retirement Plan. It's designed for workers who don't currently have access to a retirement plan through their employer — including freelancers, independent contractors, and part-time employees at small businesses.

    From policy text

    “To establish the American Worker Retirement Plan, improve the financial security of working Americans by facilitating the accumulation of wealth, and for other purposes.”
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  • Eligible workers would be automatically enrolled to save 3% of their pay, but they can change the amount or opt out entirely. Employers that fail to enroll qualifying workers face penalties. The plan is portable, meaning your account stays with you regardless of job changes.

    From policy text

    “Each qualifying worker enrolled under paragraph (1) shall be automatically enrolled to make contributions under section 105(a) at the default percentage of 3 percent of the qualifying worker's compensation from the employer for such period as shall be established by regulation under section 105(a)(3).”
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  • The government would provide a generous matching contribution through a new tax credit. Workers would receive 1% of their income automatically, plus a 100% match on the first 3% they contribute and a 50% match on the next 2%. This match is deposited directly into the worker's retirement account.
  • The match phases out for higher earners. The credit limit is 5% of the phaseout amount (tied to 200% of national median income for joint filers), and it decreases by $75 for each $1,000 of income above that threshold. This targets the benefit to low- and middle-income workers.

    From policy text

    “The limit determined under paragraph (1) for a taxable year shall be reduced by $75 for each $1,000 or portion thereof by which the eligible individual's gross income exceeds the phaseout amount.”
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  • Savings would be invested in low-cost options similar to the federal Thrift Savings Plan, including government bonds, stock index funds, and target-date lifecycle funds. Contributions are treated like Roth accounts — taxed going in but tax-free coming out in retirement.

    From policy text

    “Contributions under subsection (a) shall not be excludable from gross income and no deduction shall be allowed with respect to such contributions under section 219 of the Internal Revenue Code of 1986.”
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  • Account balances do not count against eligibility for federal public assistance programs for people under 65, protecting low-income savers from losing benefits like SNAP or Medicaid while they build retirement wealth.

    From policy text

    “In the case of an individual who has not attained age 65, the funds owned by such individual in an account and any contribution made to such funds by a participant or the Secretary of the Treasury shall not be taken into consideration when determining such individual's eligibility for any Federal public assistance benefit.”
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Economy FinanceTaxesLabor Employment

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Apr 7, 2025House

Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Apr 7, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Within 1 year of the Fund being established

Employers must enroll qualifying workers within 1 year of the Fund's establishment

If you work at a business without a retirement plan, your employer would need to sign you up within the first year — though you can opt out. You'd start automatically saving 3% of your paycheck unless you choose differently.

Shortly after enrollment begins

Government matching contributions begin flowing into worker accounts

Once the program is operational, the Treasury would start depositing matching funds into your retirement account — up to about 5% of your income depending on how much you save. These deposits would happen as close to real-time as possible alongside your own contributions.

Related Bills

1 bill
S. 1526Related bill

Retirement Savings for Americans Act of 2025

Apr 30 — Read twice and referred to the Committee on Finance.

Source Information

Document Type

Congressional Bill

Official Title

Retirement Savings for Americans Act of 2025

Bill NumberHR 2696
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Sponsor

Cosponsors

(8)
D: 2R: 6

Analysis generated by AI. Always verify with official sources.