The Retirement Savings for Americans Act would establish a new program that gives eligible workers access to portable, tax-advantaged retirement savings accounts. It also would offer federal matching contributions for low- and middle-income workers, with the match beginning to phase out at median income. The bill contains these provisions:

Eligibility and auto-enrollment:Full- and part-time workers who lack access to an employer-sponsored retirement plan would be eligible for an account, and they would be automatically enrolled at 3% of their income. Participants could choose to increase or decrease their withholding or opt out entirely at any time. Independent workers (including gig workers) also would be eligible.
Federal contribution:Low- and moderate-income workers would be eligible for a 1% automatic contribution (as long as they remain employed) and up to a 4% matching contribution via a refundable federal tax credit. This would begin to phase out at median income.
Portability: Accounts would remain attached to workers throughout their lifetimes, and workers would be able to stop and start contributions at will.
Private Assets: The accounts would be the property of the worker, and the assets could be passed down to future generations to help them build wealth and financial security.
Investment options:Participants would be given a menu of simple, low-fee investment options to choose from, including lifecycle funds tied to a worker's estimated retirement date or index funds made up of stocks and bonds.

Related: Putting 401(k)s on autopilot: Take plan design to the next level in 2023

The bill was introduced in the Senate by Sen. John Hickenlooper, D-Colo., and Sen. Thom Tillis, R-N.C., and in the House by Rep. Terri Sewell, D-Ala., and Rep. Lloyd Smudker, R-Pa. Last May, the four lawmakers formed a congressional working group focused on boosting retirement security for millions of low- and middle-income American workers, and the new bill is the byproduct of their efforts.

Instant Insights /

New bipartisan retirement savings bill introduced (while awaiting SECURE 2.0)

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