The Retirement Savings for Americans Act of 2025 establishes the American Worker Retirement Plan (AWRP) and the associated American Worker Retirement Fund within the Treasury. This new federal program aims to enhance the financial security of working Americans by facilitating wealth accumulation, particularly for those without access to employer-sponsored retirement plans.

The plan targets "qualifying workers," defined as employees of businesses without existing retirement plans or independent contractors who lack their own retirement savings arrangements. It implements automatic enrollment for these workers, with a default contribution rate of 3% of compensation, though individuals retain the option to opt-out. Businesses that fail to enroll eligible workers or deposit contributions face penalties.

The AWRP is managed by the American Worker Retirement Investment Board (AWRIB), which sets investment policies and oversees the Fund. The Board offers participants a range of investment options, including government securities, fixed-income funds, various stock index funds, and life-cycle funds, with a life-cycle fund serving as the default for those who do not make an active selection. An Advisory Council provides recommendations to the Board.

A key feature of the bill is the Government Match Tax Credit, which directly contributes to a participant's AWRP account. This credit consists of 1% of the eligible individual's gross income plus a matching percentage on participant contributions, specifically 100% for contributions up to 3% of gross income and 50% for contributions between 3% and 5% of gross income. The credit is limited and phases out based on income, targeting lower and middle-income individuals.

Contributions to the AWRP are treated as Roth contributions, meaning they are not tax-deductible, but qualified distributions are tax-free. Funds are fully nonforfeitable, and participants can make additional contributions, including catch-up contributions and transfers from tax refunds. However, if contributions are withdrawn within six months, the corresponding government match may be forfeited.

Participants can access their funds upon becoming a former participant through various distribution options, such as annuities, single payments, or installment payments. The plan also allows for loans and hardship withdrawals under specific conditions. Notably, the funds in an AWRP account are in addition to Social Security benefits and are not considered when determining eligibility for federal public assistance for individuals under 65.

The bill outlines stringent fiduciary responsibilities for the AWRIB members and the Executive Director, ensuring that the Fund is managed solely in the interest of participants and beneficiaries, similar to ERISA standards. It also includes provisions for bonding requirements, investigative authority for the Secretary of Labor, and protections against exculpatory clauses for fiduciaries.