Bill · S. 1526· Senate(119-S-1526)
Retirement Savings for Americans Act of 2025
- Introduced
- 4/30/2025
- Last activity
- 4/30/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- John Hickenlooper
- Cosponsors
- - 1 - 2
- Introduced
- In Committee
What this bill would do
The Retirement Savings for Americans Act of 2025 establishes the American Worker Retirement Fund to help working Americans build wealth. It focuses on "qualifying workers," such as those without existing employer retirement plans or eligible self-employed independent contractors. The bill creates a system of automatic enrollment through employers and provides a government match tax credit to incentivize savings. A dedicated Investment Board and Executive Director will manage the fund's assets. Participants can choose from various investment options or rely on a default life-cycle fund.
Yes· 3 of 26
Would households on low incomes be better off under this?+8
Directly incentivizes savings via government matches and protects eligibility for other public benefits.
Would people in their twenties and thirties be better off under this?+7
Allows young workers without employer plans to begin saving early with government matching.
Would farmers be better off under this?+7
Allows self-employed independent contractors to participate in a subsidized retirement fund.
The opposite· 3 of 10
Would people with substantial wealth be better off under this?-5
Excluded from the primary benefit (Government Match Tax Credit) due to income phaseouts.
Would the very wealthiest people be better off under this?-5
Excluded from benefits and potentially subject to forced distributions.
Would billionaires be better off under this?-5
Excluded from benefits and subject to forced distributions.
Who it would affect, and how
Potential Positive Impacts for People
- Increased Retirement Savings: The bill creates a retirement fund specifically for workers who do not have access to existing employer-sponsored plans (Section 2).
- Government Financial Support: Eligible individuals can receive a Government Match Tax Credit, which is deposited directly into their retirement accounts (Section 301).
- Protection of Public Benefits: For individuals under age 65, funds in these accounts and government contributions are not counted when determining eligibility for Federal public assistance benefits (Section 4).
- Automatic Participation: The auto-enrollment process helps workers begin saving 3 percent of their compensation without needing to manually sign up (Section 104(b)).
- Flexibility for Independent Contractors: The bill allows self-employed independent contractors to participate in the fund (Section 2).
- Financial Security for Survivors: The bill includes spousal protections and survivor rights to ensure funds are handled correctly upon a participant's death (Section 109).
Potential Negative Impacts for People
- Loss of Funds for Early Withdrawals: If a government match contribution does not stay in the fund for at least 6 months, the credit amount is forfeited and returned to the Treasury (Section 301(h)).
- Forced Distributions: Participants may be forced to take a distribution from the fund if their gross income exceeds a specific dollar threshold (Section 106(j)).
- Tax Burdens on Involuntary Distributions: If a forced distribution is paid directly to the participant rather than rolled over, it is treated as an early distribution, which may carry tax penalties (Section 106(j)(4)).
- Investment Risk: The fund is subject to net losses from investments, which would reduce the total amount in a participant's account (Section 2).
- Employer Penalties: Businesses that fail to enroll qualifying workers or fail to deposit contributions face penalties ranging from 2 percent to 10 percent of the failed amount (Section 104(c)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+8Good For Farmers+7Good For Young Adults+7Good For African Americans+6Good For Hispanic Americans+6Good For Middle Aged+6Good For Native Americans+6Good For People With Disabilities+6Good For Immigrants+5Good For Middle Class Households+5Good For Retirees+5Good For Rural Residents+5Good For Seniors+5Good For Women+5Good For Asian Americans+4Good For L G B T Q Community+4Good For Men+4Good For Students+4Good For Urban Residents+4Good For Veterans+4Good For White Americans+4Good For Billionaires-5Good For High Net Worth Individuals-5Good For Ultra High Net Worth Individuals-5Good For Business Owners-3Good For High Income Households-2
- Social Issues And Justice
- Improves Poverty Reduction+5Improves Racial Equity+3
- Economy And Finance
- Improves Economic Growth+2Reduces Middle Class Taxes+2Reduces Government Spending-3Reduces National Debt-3Improves Fiscal Responsibility-2Improves Small Business Support-2
- Governance And Ideology
- Increases Federal Power+4Increase States Rights-4
- 5/13/2026
- 2 Cosponsors added.
- 4/30/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Christopher CoonsDemocrat · Delaware
Tim SheehyRepublican · Montana
Thomas TillisRepublican · North Carolina