It was rumored that during his State of the Union address Tuesday night, President Donald Trump would talk about creating a retirement savings plan for workers who don’t have access to one through their employer. Sure enough, he hit on it during the 1 hour, 47-minute-long speech just after bragging about surging 401(k) account balances thanks to a record-setting stock market.
Here is word-for-word what Trump said on the topic:
“Since I took office the typical 401(k) balance is up by at least $30,000. It’s a lot of money. We have millions and millions of people—because the stock market has done so well, setting all those records—the 401(k)’s are way up. Yet half of all of working Americans still do not have access to a retirement plan with matching contributions from an employer. 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. We will match your contribution with up to $1,000 each year as we ensure that all Americans can profit from a rising stock market.”
According to a Tuesday morning article by Semafor’s Eleanor Miller citing people familiar with the effort, the Trump administration might create the accounts without going through Congress.
“…401(k)’s are way up. Yet half of all of working Americans still do not have access to a retirement plan with matching contributions from an employer.”
President Trump during Tuesday’s State of the Union
While details remain to be seen, it is believed that President Trump may consider reviving the MyRA program first introduced by President Barack Obama—during one of his State of the Union addresses—in 2014. Billed as “starter” accounts with Roth IRA-like tax advantages, MyRAs were aimed at helping workers begin saving for retirement. The program—which drew only 30,000 participants—was discontinued in 2017 during Trump’s first term over cost concerns. A revamped version could potentially be paired with the Saver’s Match—a federal matching contribution set to debut in 2027 for low- to moderate-income workers established under SECURE 2.0.
The Saver’s Match represents a significant improvement over its predecessor, the Saver’s Credit. Starting in 2028, eligible individuals, based on their 2027 tax returns, can receive a federal matching contribution of up to 50% on the first $2,000 annual contributions to workplace retirement plans or IRAs, with a maximum match of $1,000 per tax year.
Trump’s plan could also take cues from the Retirement Savings for Americans Act, which has been reintroduced in Congress multiple times since it was first introduced in late 2022 and incorporates elements of the federal government’s highly successful Thrift Savings Plan. The proposed legislation, which supporters say would help low- and middle-income Americans build wealth and save for retirement, seeks to establish a new program that gives eligible workers access to portable, tax-advantaged retirement savings accounts. If passed, the RSAA would allow the federal government to match contributions for low- and middle-income workers, with the match beginning to phase out at median income.
Trump said also recently said he was “very seriously” looking into Australia’s “superannuation” retirement system for ideas to boost retirement savings in the U.S. Under Australia’s system, employers are required to fund workers’ savings accounts, which are invested in select funds. Employees can also make their own contributions.
And the Trump administration may also be looking to capitalize on the nearly universal positive reaction surrounding the creation of Trump Accounts. Also known as the Invest America program, Trump Accounts are specialized, tax-advantaged investment accounts for children under 18, established by the 2025 “One Big Beautiful Bill” Act, with initial deposits becoming available on July 4, 2026. The Treasury-administered accounts, designed to build long-term wealth, provide $1,000 in seed money for children born between 2025-2028, with up to $5,000 in annual family contributions allowed. Employers are also allowed to make contributions.
401(k) Specialist will continue to report on additional details stemming from Tuesday’s State of the Union announcement about the new retirement plan for those who lack workplace access as they become available.
SEE ALSO:
• ‘Retirement Savings for Americans Act’ Introduced Again in Congress
• Saver’s Match Could Solve the Retirement Savings Gap: Morningstar
• Trump Accounts Not Subject to ERISA: Industry Wants Certainty