President Trump first mentioned this plan during his State of the Union address in February
Jim WATSON | AFP via Getty Images
Key Takeaways
- President Donald Trump signed an executive order Thursday that would expand access to retirement plans for workers who aren’t offered one through their employers.
- The new retirement accounts will utilize the “Saver’s Match,” which mandates the federal government match retirement plan contributions up to $1,000 for workers who make less than $35,000 per year.
- About 56 million Americans don’t have access to a retirement plan through their employers.
President Donald Trump signed an executive order Thursday to create a new kind of retirement account, expanding access to retirement plans for workers who aren’t offered one through their employers.
Trump first mentioned this plan in February during his State of the Union address. Under the plan, these new retirement accounts will utilize the so-called “Saver’s Match,” 2022 legislation that mandates the federal government match retirement plan contributions up to $1,000 for workers who make less than $35,000 per year. The Saver’s Match will go into effect in tax year 2027.
“I believe this executive order is a step in the right direction in encouraging individuals – particularly those without access to an employer-sponsored retirement plan – to begin saving for retirement,” wrote Julie Hall, a financial advisor at Vision Capital Partners, in an email.
READ: What Is the Social Security COLA for 2027?
Trump’s Executive Order: A $1K Match for Eligible Savers
About 56 million Americans don’t have access to a retirement plan through their employers, according to AARP.
In response to the executive order, the Treasury Department will launch a new website, TrumpIRA.gov, where workers can find private-sector retirement plans they qualify for.
“Many retirees know that their Social Security benefits have not kept pace with the real cost of living, especially for essentials like health care, housing and food,” Shannon Benton, executive director of The Senior Citizens League, told U.S. News. “That reality makes additional sources of retirement income more important than ever.”