New retirement savings for workers and self-employed with government matching.
This act establishes a new nationwide retirement savings plan for workers without existing retirement options and for the self-employed. It features automatic enrollment with an opt-out choice and offers government matching contributions to help individuals build financial security for retirement.
Key points
New Retirement Program: Establishes the American Worker Retirement Plan for employees without existing retirement plans and for independent contractors.
Automatic Enrollment & Flexibility: Employers automatically enroll eligible workers, but individuals can opt out. Self-employed individuals can enroll voluntarily.
Government Matching Contributions: The government will contribute to retirement accounts through a tax credit, boosting savings.
Fund Protection: Account funds are owned by the participant, protected from creditors (except for child support/alimony and federal tax levies), and fully non-forfeitable.
Access to Funds: Allows withdrawals upon retirement as an annuity, lump sum, or multiple payments. Loans and early withdrawals are also possible for financial hardship or after age 59.5.
Financial Literacy: Mandates financial literacy requirements, especially before early withdrawals or loans.
Status:
Introduced
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