Trump Signing Executive Order Today Creating ‘TrumpIRA.gov’
It was very notable that President Donald Trump talked about the problem of too many Americans lacking access to retirement plans with matching contributions from employers during his State of the Union address in February.
“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 said during the address.
Today, we are expected to learn specific details of the plan to broaden access to retirement savings for workers whose employers don’t offer a 401(k)-type plan via an Executive Order President Trump is scheduled to sign in the Oval Office today.
The order would create a new website, TrumpIRA.gov, that workers could use to enroll in a private-sector retirement plan.
Trump’s order will coincide with the launch of the Saver’s Match, a 2022 initiative of the Biden administration that delivers up to $1,000 a year in matching retirement contributions for lower-income workers.
The TrumpIRA plan, first reported today by Semafor, will coincide with the launch of the Saver’s Match, a 2022 initiative of the Biden administration that delivers up to $1,000 a year in matching retirement contributions for lower-income workers.
Under the Saver’s Match, starting in January 2027, nearly 22 million lower-income employees who contribute to a retirement savings account become eligible for matching funds from the government, with the maximum match being $1,000 per person.
To qualify for the Saver’s Match, a single tax filer must earn less than $35,500. The cap for joint filers is $71,000. The maximum match rate is 50% of an employee’s contribution.
The Saver’s Match, a provision of SECURE 2.0, is replacing the current Saver’s Credit, a nonrefundable tax credit for lower-income taxpayers. The big difference: The Saver’s Credit only reduces the tax you owe. The Saver’s Match adds dollars to a retirement account.
ARA, TIAA express support
The American Retirement Association issued a press release this morning commending the expected issuance of the Executive Order on TrumpIRA.gov and the Saver’s Match, noting that efforts to increase retirement savings—particularly among workers who currently lack access to a workplace retirement plan—are critical to improving retirement outcomes, closing the coverage gap and building long-term economic resilience.
“We strongly support automatic enrollment of uncovered workers and expansion of the Saver’s Match and appreciate the Administration’s leadership on these important issues.”
ARA’s Brian Graff
“ARA has long supported efforts to expand retirement plan coverage and increase savings, particularly for workers who have historically been left behind,” said Brian Graff, CEO of the American Retirement Association. “We strongly support automatic enrollment of uncovered workers and expansion of the Saver’s Match and appreciate the Administration’s leadership on these important issues. We stand ready to work with policymakers to ensure that any new initiatives are designed to complement the existing system, preserve choice, and provide fair and meaningful incentives for all savers.”
The ARA release went on to say it strongly supports the Administration’s reported emphasis on automatic enrollment and efforts to expand the Saver’s Match, saying both policies have the ability to increase participation and improve savings outcomes, particularly among lower- and moderate-income workers.
TIAA also issued a press release this morning in support of the Executive Order.
“We’re encouraged by the Administration’s continued focus on improving America’s retirement system, especially by expanding access for the nearly 59 million Americans who currently lack a workplace retirement plan—representing roughly half of all working Americans. These are ideas closely aligned with TIAA’s Retirement Bill of Rights, and we welcome policy momentum that keeps retirement security a bipartisan priority,” said Chris Spence, Head of Federal Government Relations & Public Policy, TIAA.
“A proposal that helps bridge the gap between those with and without employer-sponsored plans is a meaningful step forward.”
TIAA’s Chris Spence
“Research consistently shows that automatic enrollment, employer matching contributions, and the convenience of payroll deduction dramatically increase participation rates and contribution levels,” Spence added. “Without these structural supports, individuals face meaningful barriers to building long-term financial security. A proposal that helps bridge the gap between those with and without employer-sponsored plans is a meaningful step forward.”
According to Semafor, workers will be able to leverage the TrumpIRA.gov site “to filter private-sector retirement plans by factors like cost, minimum contribution, and minimum balance,” and will call for federal agencies to work on expanding the initiative over time, either by enrolling workers automatically or by broadening access to the Saver’s Match.
EDITOR’S NOTE: This is a breaking story, which has been updated with a live link to the Executive Order which is now available after being signed this afternoon in the Oval Office.
SEE ALSO:
• Trump Floats New Retirement Plan for Workers Without 401(k)s During State of the Union
• 22 Million Could Be Eligible for 2027 Saver’s Match
• Modeling the Future of the Saver’s Match Program
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.