The Retirement Savings for Americans Act of 2025 aims to provide a framework for establishing retirement plans for American workers, detailing the management and investment of these plans, and introducing a government match tax credit to support retirement savings. The Act includes provisions related to the management and investment of retirement funds, eligibility and enrollment criteria, tax treatment, spousal protections, and the establishment of an oversight board and advisory council for effective plan administration.

The section provides definitions for various terms used in the Act, such as "account," referring to specific retirement accounts set up under the bill, and "Board," referring to the American Worker Retirement Investment Board. It also explains what qualifies as a "business," "earnings," "existing retirement plan," "participant," "qualifying worker," and other related terms, helping to clarify who and what is covered under the Act's provisions.

The funds paid out from the Fund to participants and former participants are additional to what they receive from Social Security benefits, unless specified otherwise in this Act.

In this section, it states that for people under 65, money in an account and any contributions made to it should not affect their eligibility for Federal public assistance benefits.

The American Worker Retirement Fund is established in the U.S. Treasury to collect and invest money from contributions under specific sections of this Act and the Internal Revenue Code. The money in the Fund is used for investments, administrative costs, distributions, loans, and insurance purchases, and it ensures the exclusive, nonforfeitable benefit of participants, protecting their funds from most legal claims, except certain obligations like child support or federal taxes.

The section outlines the rules for how the American Worker Retirement Fund is to be invested, including specific types of investment options like government bonds, fixed-income funds, and stock index funds. It describes the responsibilities of the Board and the Executive Director in managing these investments, stipulates that participants cannot exercise voting rights on securities owned by the Fund, and requires regular performance reports to be sent to participants.

A worker who qualifies can join the Fund after finishing the enrollment process outlined in section 104. If someone stops participating, they can no longer contribute to the Fund but will keep control of their account and can make investment choices, subject to the withdrawal rules in section 106.

The bill section outlines the rules for enrolling qualifying workers into a Fund, which involves a joint effort by the Secretary of the Treasury and the Executive Director to create an enrollment process, including for independent contractors. It mandates automatic enrollment with an opt-out option, sets penalties for employers failing to comply, and specifies how contributions and penalties are handled.

The section outlines how participants can contribute to their accounts with a Fund, including regular and additional contributions, like catch-up contributions and tax refunds. It also sets limits on contributions and explains that these funds are treated as Roth contributions, meaning they are not tax-deductible, and specifies the joint regulations prescribed by the Secretary of the Treasury and the Executive Director.

Former participants of a fund can choose to withdraw their account balance in different ways, such as receiving payments as an annuity, a single payment, or multiple payments. They may also transfer their balance to another retirement plan. If a former participant dies, their spouse can maintain or withdraw the account, but cannot contribute further. Participants can also borrow from their account or make early withdrawals under specific conditions, but must follow certain rules outlined by the Executive Director.

The Executive Director is responsible for managing individual accounts for participants who contribute to a fund, ensuring the accounts reflect all contributions and allocated earnings or losses. The balance in each account is calculated by adding up all contributions and allocations, then subtracting any amounts that have been paid out.

For tax purposes, the section states that the same rules applied to the Thrift Savings Fund will also be applied to the American Worker Retirement Fund, unless specified otherwise in the Act.

The section outlines that spousal protections and court orders, as defined in existing U.S. laws, will similarly apply to the governance of a specific Fund and its participants. The Executive Director must create regulations to ensure that these protections and survivor rights are as similar as possible to those provided by the Thrift Savings Plan for its members.

The section establishes the American Worker Retirement Investment Board within the U.S. Government's executive branch, outlining its composition, including member appointments by the President with Senate consent, and terms. It specifies the Board's responsibilities such as policy establishment, oversight of the Fund's investments, and implementation of financial literacy requirements, while also detailing its powers and limitations, particularly in investment decisions.

The American Worker Retirement Plan Advisory Council is a group created by the Board, consisting of 7 members chosen by the Chair, who have experience in investment management, small business operations, or providing investment advice. The council’s main purpose is to give advice on investment policies and the administration of certain parts of the Act, and its decisions require approval by a majority of its members.

The Board is responsible for appointing an Executive Director who has significant experience in managing financial investments and pension plans. The Executive Director's duties include executing the Board's policies, managing the Fund, and overseeing the implementation of the Act, with the authority to appoint personnel, procure services, and delegate functions as needed.

The section outlines that the Board is responsible for creating investment policies aimed at wisely growing funds for retirement and keeping costs low. Additionally, it requires the Board to choose multiple asset managers, ensuring no single manager handles too much of the fund, and limits their contracts to a maximum of five years.

The section outlines the administrative rules for the Board's operation. It requires the Board to meet at least monthly and whenever the Chair calls a meeting, specifies that a quorum of three members is needed for conducting business, and clarifies that vacancies do not affect the quorum's ability to act. Additionally, Board members receive daily pay and travel expenses from the Fund for their official duties.

The section outlines the responsibilities, liabilities, and penalties for fiduciaries managing a Fund. It defines key terms, prohibits certain transactions, allows exemptions by the Secretary of Labor, and specifies legal actions that can be taken in case of violations, including civil penalties and audits to ensure compliance.

The section outlines the rules for bonding certain people who manage funds of a specific fund, requiring them to have a bond to protect against loss from fraud or dishonesty. There are exceptions for some financial institutions, and the Secretary of Labor has the authority to prescribe the bond amount, ensure the bond meets specific conditions, and grant exemptions where necessary.

The Secretary of Labor has the authority to investigate and determine if someone has broken or is about to break certain rules, using the powers granted by the Employee Retirement Income Security Act of 1974.

Any part of an agreement that tries to excuse a fiduciary from their responsibilities or liabilities is invalid. Additionally, funds may be used to buy insurance to protect fiduciaries from potential liabilities, regardless of whether the insurance allows the insurer to claim reimbursement from the fiduciary if they breach their duties.

The section grants the Executive Director the power to issue subpoenas to gather necessary materials for responsibilities under the Act, protects those who comply with subpoenas from being sued, allows courts to enforce compliance, and requires the Executive Director to establish relevant regulations.

The section introduces a Government Match Tax Credit for eligible individuals, allowing them a tax credit based on their gross income and contributions to the American Worker Retirement Fund. The credit percentages vary based on the contribution amount to the fund, and the credit is given as an overpayment, to be deposited into the individual's retirement account, with certain rules about maintaining contributions and adjusting excess payments.

The Government Match Tax Credit provides eligible individuals with a credit based on their gross income and contributions to the American Worker Retirement Fund, subject to certain limits and conditions. Contributions must remain in the fund for at least six months to avoid forfeiture, and any excess credit payments are adjusted through tax increases.