Retirement Savings for Americans Act of 2025

Protection of Federal Public Assistance Eligibility: Funds held in these accounts will not be considered when determining an individual's eligibility for Federal public assistance benefits for those under age 65. (Section 4)

Asset Protection: Sums in the account cannot be assigned or alienated and are not subject to legal processes like execution, levy, attachment, or garnishment, with specific exceptions for child support, alimony, and tax levies. (Section 101(f)(2))

Investment Variety: Participants have access to various investment options, including Government Securities, Fixed-Income funds, and several types of Stock Index funds. (Section 102(a)(1))

Financial Information Access: The Board is required to provide regular reports that include personalized estimates of assets and income at retirement to help people make sound financial decisions. (Section 102(e))

Government Matching: Through the Government Match Tax Credit, the Secretary of the Treasury contributes funds to the participant's account based on their gross income and contribution levels. (Section 301(a))

Mandatory Contributions via Auto-Enrollment: Qualifying workers are automatically enrolled to contribute 3 percent of their compensation unless they specifically elect to opt out. (Section 104(b)(1-2))

Restrictions on Withdrawals: While participants can access funds, certain restrictions apply to withdrawals, such as the inability to change an annuity election once the contract is purchased. (Section 106(e))

Tax Treatment of Contributions: Contributions made by participants are not excludable from gross income, meaning they are not tax-deductible. (Section 105(d))

Potential Loss of Match: If a contribution made via the Government Match Tax Credit does not remain in the fund for at least 6 months, the credit amount is forfeited. (Section 301(h)(1))