Does America have superannuation?

Published on January 28, 2026

Aya Takriti, an IRS Enrolled Agent with 12 years of expat tax experience, specializes in US tax preparation, tax planning and tax advice for US citizens and Green Card holders living and working in the Middle East. *Schedule a consultation with Aya today.

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Does America have superannuation, or something similar?

The United States doesn’t have a compulsory superannuation system. Instead, Americans build retirement savings through Social Security, 401(k)s, and IRAs.

In practice, most people piece things together with a 401(k) (or 403(b)/457 if they’re in education, non-profits, or government), plus an IRA they open themselves.

Social Security sits in the background as a federal benefit based on your work history. It’s not designed to replace a full salary, but it provides a base.

How does superannuation compare with a 401(k) in the US?

A 401(k) is the closest US equivalent to Australia’s Superannuation, but participation is voluntary and employer contributions aren’t mandatory.

Coverage and compulsion

Superannuation (Australia): Employers must contribute at the statutory rate for eligible workers.
401(k) (US): No national mandate. Employers choose whether to offer a plan and whether to match contributions.

Who puts money in

Super: Employer contributions are compulsory. You can add salary sacrifice or personal contributions.
401(k): Employee deferrals drive the balance. Employer matches are common but optional and vary by company.

Enrollment and defaults

Super: Once eligible, you’re covered and contributions flow automatically.
401(k): Many plans auto-enroll, but not all. If your employer doesn’t offer a plan, your fallback is an IRA you open yourself.

Tax treatment

Super: Employer and salary-sacrifice amounts are taxed at concessional rates inside the fund.
401(k):
- Traditional 401(k): Pre-tax going in, taxed when withdrawn.
- Roth 401(k): After-tax going in, qualified withdrawals tax-free.
  IRAs follow the same Traditional vs Roth idea.

Investment menus and fees

Super: You choose from your fund’s menu (often with a default lifecycle option). Fees are shown at the fund level.
401(k): Menus and fees vary by employer and recordkeeper. IRAs offer a wider choice, but the selection rests on you.

Access and portability

Super: Generally available at preservation age and when a condition of release is met; easy to consolidate funds in Australia.
401(k)/IRA: Access is tied to age and plan rules, with penalties for early withdrawals unless an exception applies. You can roll an old 401(k) to an IRA or to a new employer’s plan. Cross-border rollovers into Super aren’t standard.

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Is an IRA the American version of superannuation?

Not exactly. An IRA is a personal retirement account you open yourself.

Australia’s Superannuation is a workplace system where employers must contribute for eligible workers. In the US, IRAs sit alongside Social Security and any workplace plan you might have, like a 401(k).

Where do IRAs fit in the mix?

Traditional IRA: potential tax deduction now, then you pay tax when you withdraw in retirement.
Roth IRA: no deduction now, but qualified withdrawals are tax free later.
Annual limits: contributions are capped each year, and some income rules affect what you can put in or deduct.
Control: you choose the provider and investments, which is great for flexibility if you’re comfortable picking a portfolio.

When should you use an IRA vs a workplace plan?

If your employer offers a 401(k), start there. After that, or if your job doesn’t offer a plan, an IRA is the next stop. IRAs are also handy between jobs because you’re not waiting on a new employer to get started.

Portability and rollovers are straightforward within the US system. You can roll an old 401(k) to an IRA when you leave a job, or to a new employer’s plan if they allow it. You can transfer an IRA between providers without tax if you use a trustee-to-trustee transfer.

Do American employers pay compulsory super like in Australia?

No. There’s no federal mandate that forces US employers to contribute the way Australia’s Superannuation Guarantee does. Employers decide whether to offer a plan and whether to add a match. Some are generous, some offer nothing, and many land somewhere in between.

Coverage is improving, just not uniformly:

Auto-enroll 401(k) plans are more common, so many employees are enrolled by default unless they opt out.
State auto-IRA programs exist in a growing list of states for workers whose employers don’t offer a plan. These are employee-funded payroll IRAs, not employer-funded Super.
Part-time and casual workers see mixed access. Rules have improved, but participation can still lag when hours are variable or employers skip offering a plan.

What should you do in practice?

If your job offers a 401(k), enroll and contribute enough to capture the full match if there is one.
If there’s no plan, open an IRA and automate monthly contributions from your bank account.
When you change jobs, consolidate old accounts where it makes sense so fees stay low and your investments are easy to track.

Is Social Security the same as superannuation?

Social Security isn’t a savings account like Super, it’s a government-funded benefit based on your work history. It isn’t an invested account with your name on it, and you don’t pick funds inside it.

Australia’s Superannuation is built around individual accounts, compulsory employer contributions, and investment choices you can control.

So how do US retirement accounts compare to Australian Super in real life?

Most Americans build retirement income from three places that work together:

A workplace plan if one’s offered, such as a 401(k), 403(b), or 457. You choose how much to contribute, and some employers add a match.
An IRA you open on your own. Traditional IRAs defer tax until withdrawal. Roth IRAs use after-tax money, with qualified withdrawals tax free.
Social Security as the base payment later in life.

Can I roll my Australian super into a US IRA?

Generally, no. Direct, tax-favored rollovers from Australian Super into a US IRA aren’t available. The common path is to keep Super where it is, manage it under Australian rules, and treat US accounts as a separate bucket.

What if you want to access Super after moving?

Consider distributions only when you’re eligible under Australian law, and plan the timing carefully. A withdrawal can have US tax effects, Australian tax implications, and currency issues. Before you act, map out what you’re taking, which country will tax it, and how exchange rates factor in.

How do you report things in the US?

FBAR (FinCEN 114): If your combined non-US accounts topped US$10,000 at any point in the year, you file an FBAR.
Form 8938 (FATCA): If your foreign financial assets exceed the relevant thresholds for your filing status and where you live, include them with your US return.