Savings Account for Every American Act of 2005

The Savings Account for Every American Act of 2005 (H.R. 3069) proposed a voluntary alternative to the traditional Social Security system by allowing workers to redirect their payroll taxes into private investment accounts known as S.A.F.E. accounts. Under this plan, participating employees would contribute 6.2% of their wages to these tax-exempt accounts, with employers required to provide matching contributions after the account had been maintained for 15 years.

For citizens who chose to opt in, the primary impact would be a shift from the federal Social Security program to a self-directed retirement model. Participants would be exempt from paying Social Security taxes and, in exchange, would no longer be eligible for traditional Social Security old-age, survivors, or disability insurance benefits. Funds in these accounts would grow tax-free, and while withdrawals would generally be taxed as income, they could be accessed without penalty after age 59 ½ or used for specific purposes like purchasing insurance.