President Donald Trump is set to sign an executive order Thursday that mandates the creation of a new government website designed to connect Americans with private-sector retirement savings accounts. This initiative aims to bolster access to retirement planning for millions of workers whose employers do not currently offer such benefits.
The order is strategically timed to help individuals secure retirement plans before January, when a new federal matching contribution program, dubbed the Saver’s Match, is slated to commence. This program, established by 2022 legislation under President Joe Biden, will provide a match of up to $1,000 for low- and middle-income workers earning less than $35,000 annually.
According to a White House official, the executive order is intended to extend the benefits of the Saver’s Match to approximately 50 million individuals who currently lack employer-sponsored retirement plans. President Trump is directing the Treasury Department to develop and launch TrumpIRA.gov, a platform where these workers can explore and compare various retirement plan options offered by private companies. It is important to note that the order does not introduce a new government-backed retirement plan, but rather facilitates connections to existing private sector offerings.
Addressing a ‘Gross Disparity’
The concept was previously highlighted by President Trump during his State of the Union address in February. He pointed out that roughly half of the nation’s workforce does not have access to employer-provided retirement plans that include matching contributions. “To remedy this gross disparity, I’m announcing that next year my administration will give these often-forgotten American workers — great people, the people that built our country — access to the same type of retirement plan offered to every federal worker,” Trump stated at the time.
Saver’s Match Details
The Saver’s Match program, which will become active in January, offers a maximum federal match of $1,000 for single filers and $2,000 for married couples filing jointly. The program also provides smaller matching contributions for single filers earning up to $46,000 annually. These matches are applicable to contributions made towards traditional 401(k) plans, Individual Retirement Arrangements (IRAs), and Roth IRAs.
Details of the executive order were initially reported by the news outlet Semafor.
