What does Preamble of HR 2696 do?

This bill is formally titled the American Worker Retirement Plan. The bill aims to improve the financial security of working Americans. A stated purpose of the bill is to facilitate the accumulation of wealth.

What does SHORT TITLE; TABLE OF CONTENTS. of HR 2696 do?

This bill is formally titled the Retirement Savings for Americans Act of 2025.

What does Spousal protections; survivor rights. of HR 2696 do?

This section addresses spousal protections and survivor rights.

What does DEFINITIONS. of HR 2696 do?

This section defines terms used throughout the Act. The term 'account' refers to an account established and maintained under section 107. The 'Board' is the American Worker Retirement Investment Board established under section 201. A 'business' is any entity engaging in interstate commerce. The 'Fund' is the American Worker Retirement Fund established under section 101(a). A 'qualifying worker' is an employee or independent contractor meeting specific criteria related to retirement plan availability. A 'participating employer' is a business employing a qualifying worker or contracting with one who opts to enroll. An 'existing retirement plan' includes eligible retirement plans as defined in the Internal Revenue Code, the Thrift Savings Plan, and other tax-deferred plans deemed consistent with the Act's purpose.

What does RELATIONSHIP TO SOCIAL SECURITY. of HR 2696 do?

This section clarifies the relationship between the Fund and Social Security benefits. Funds payable under the Fund are in addition to benefits payable under the Social Security Act.

What does GOVERNMENT BENEFITS. of HR 2696 do?

This section concerns government benefits for individuals under age 65. Funds in an account and contributions to those funds are not considered when determining eligibility for Federal public assistance benefits for individuals under 65. The Secretary of the Treasury can make contributions to these funds.

What does THE AMERICAN WORKER RETIREMENT FUND. of HR 2696 do?

This section establishes the American Worker Retirement Fund in the Treasury of the United States. The Fund's composition includes contributions under sections 105 of this Act and 25F of the Internal Revenue Code, along with net investment earnings and losses, and payments for administrative expenses. Funds within the American Worker Retirement Fund can be used for investments, administrative expenses, distributions, loans, and insurance purchases. Each participant in the Fund will have an individual account. Administrative expenses, including those related to financial literacy, will be paid from the Fund's net earnings. Sums in the Fund are intended for the exclusive benefit of participants or former participants and their beneficiaries. Generally, funds within the Fund cannot be assigned or alienated, but exceptions exist for child support, alimony, payments under section 109, and federal tax levies. The Fund's sums are non-appropriated and can only be used for the purposes specified in this section. All contributions and net earnings are considered the exclusive property of the participant. Contributions made under sections 105 and 25F are fully nonforfeitable, with exceptions outlined in section 25F(h).

What does INVESTMENT OF AMERICAN WORKER RETIREMENT FUND. of HR 2696 do?

This section establishes investment policies for the American Worker Retirement Fund. The Board is responsible for selecting investment funds and options, subject to certain conditions. Participants are provided with several investment options, including Government Securities, Fixed-Income, Common Stock Index, Small Capitalization Stock Index, International Stock Index, and Life-Cycle Investment Funds. The Board may provide additional investment options consistent with its fiduciary duty. The Executive Director is responsible for investing sums available in the Fund and will default to an age-appropriate Life-Cycle Investment Fund if a participant hasn't made a selection. Participants can select their investment funds at least twice per year. Voting rights associated with the Fund's securities cannot be exercised. The Board must provide regular reports to participants and former participants on investment performance, including personalized retirement estimates.

What does ELIGIBILITY. of HR 2696 do?

A qualifying worker becomes eligible to participate in the Fund after completing the enrollment process outlined in section 104. Former participants are not eligible to contribute to the Fund under section 105(a). Former participants retain ownership of funds in their account and any associated earnings. Former participants are subject to withdrawal conditions established in section 106. Former participants can make investment decisions regarding their account on the same basis as current participants.

What does ENROLLMENT. of HR 2696 do?

This section establishes an enrollment process for participating employers to enroll qualifying workers in the Fund. Businesses operating at the Fund's establishment have one year to enroll qualifying workers. Businesses can elect to enroll independent contractors as qualifying workers, but this election does not affect their classification as independent contractors. Employers must automatically enroll qualifying workers in the Fund unless they opt out. Enrolled workers are automatically enrolled to contribute 3 percent of their compensation. Qualifying workers can opt out of participation through procedures established by the Secretary of the Treasury and the Executive Director. Employers failing to enroll workers or deposit contributions face penalties ranging from 2% to 10% of the unpaid amount, based on the duration of the failure. The Secretary of the Treasury will credit the Fund with sums necessary to carry out this section and section 105(d).

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Retirement Savings for Americans Act of 2025 — HR. 2696

Last updated: 4/7/2025 · Introduced: 4/7/2025

Author: Lloyd Smucker (R-PA)

TL;DR (AI)

The Retirement Savings for Americans Act of 2025 establishes the American Worker Retirement Fund to provide a retirement savings plan for working Americans.
The Fund is composed of contributions from participants, employers, and government matching tax credits, as well as net investment earnings and losses.
Participants have individual accounts and can choose from various investment options, with the Board responsible for selecting investment funds and options.
The Act prohibits the assignment or alienation of funds in the account, except in cases of child support, alimony, or federal tax levies.
Distributions from the Fund are treated as Roth distributions, with contributions considered employer contributions not includible in gross income.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title; table of contents..

2 sections

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TITLE I

-THE AMERICAN WORKER RETIREMENT PLAN

10 sections

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TITLE III

-GOVERNMENT MATCH TAX CREDIT

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TITLE II

-THE AMERICAN WORKER RETIREMENT PLAN INVESTMENT MANAGEMENT

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