H.R.2696 - Retirement Savings for Americans Act of 2025 (119th Congress)
Summary
H.R.2696, the Retirement Savings for Americans Act of 2025, aims to establish the American Worker Retirement Plan. It seeks to improve financial security for working Americans by facilitating wealth accumulation through a new retirement savings program. The bill outlines eligibility criteria, contribution methods, investment options, and distribution rules for the plan.
Expected Effects
The Act would create a new retirement savings option for workers, especially those without existing employer-sponsored plans. It introduces a government match tax credit to incentivize participation. This could lead to increased retirement savings and reduced reliance on social security in the long term.
Potential Benefits
- Provides a retirement savings option for workers without existing employer-sponsored plans.
- Offers a government match tax credit to encourage participation.
- Allows for automatic enrollment with an opt-out provision, potentially increasing participation rates.
- Provides various investment options, including government securities and stock index funds.
- Includes spousal protections and survivor rights, enhancing financial security for families.
Potential Disadvantages
- Creates a new government bureaucracy (American Worker Retirement Investment Board) which could be inefficient or costly.
- Penalties for employers who fail to enroll eligible workers could burden small businesses.
- Investment options may not perform as expected, leading to insufficient retirement savings for some participants.
- The auto-enrollment feature may lead to some workers contributing without fully understanding the implications.
- The complexity of the plan and its interaction with existing tax laws may create confusion.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to lay and collect taxes to provide for the general welfare of the United States. The establishment of a retirement savings plan could be argued as promoting the general welfare by improving the financial security of citizens. The bill does not appear to infringe on any specific individual rights or liberties protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).