President Trump signs TrumpIRA order expanding access to retirement savings
President Trump signed an executive order creating TrumpIRA.gov, which can be used by workers whose employers do not offer a 401(k) plan to enroll in a retirement plan.
President Donald Trump signed an executive order on April 30 that expands access to retirement savings for workers whose employers do not offer a 401(k)-type plan.
The order created a new website, TrumpIRA.gov, that workers can use to enroll in private sector retirement plans. The site is required to be up and running by January 1, 2027.
“Starting early next year, all Americans will be able to access TrumpIRA.gov and open a new low-cost IRA account,” President Trump said during a signing ceremony at the White House this afternoon.
“Then they will have access to the same types of retirement accounts that federal employees enjoy,” he said. White House officials say the new accounts will be similar to the Thrift Savings Plan already offered to federal employees.
President Trump’s order coincides with the Biden administration’s upcoming launch of Saver’s Match, an initiative that would provide low-income workers with matching retirement benefits of up to $1,000 a year starting in 2022.
The TrumpIRA plan is designed to increase the percentage of American workers who save for retirement.
Millions of workers lack workplace retirement benefits
Roughly two-fifths of full-time workers and four-fifths of part-time workers don’t have access to retirement savings through their employer, according to the Economic Innovation Group.
For the past half-century, the federal government has used tax cuts to persuade Americans to save more for retirement and supplement Social Security.
This effort has been only partially successful. Currently, about half of all private sector workers participate in a 401(k) plan.
President Trump telegraphed his plans to increase retirement savings in his 2026 State of the Union address.
“We have millions of people whose 401(k)s are up significantly because the stock market is doing so well and setting all these records,” he said. “However, half of working Americans still do not have access to a retirement plan with matching contributions from their employer.
“To correct this egregious disparity, I am announcing that next year, my administration will give America’s oft-forgotten workers, our great people, the people who built our country, access to the same kind of retirement benefits that are available to all federal employees.”
At the White House signing ceremony, President Trump mentioned the new plan in his speech.
“It just seemed fair,” Trump said. “As I say, promises were made and promises kept.”
President Trump said he will ask Congress to expand retirement accounts to people who earn more than $35,500 a year, the executive order’s cap.
More states are introducing “automatic savings” programs, expanding access to tax-advantaged retirement plans by encouraging companies to offer them and automatically enrolling employees. Starting in 2025, most new 401(k) plans were required to automatically enroll workers, rather than leaving the decision up to them.
Retirement savings is a rare bipartisan area of federal policy, as the Trump administration has piggybacked on Biden-era initiatives.
How does the TrumpIRA plan work?
Starting in January 2027, Saver’s Match will make approximately 22 million low-income employees who contribute to retirement savings accounts eligible for matching funds from the government. The maximum amount is $1,000 per person, according to a Pew analysis.
To qualify for the Saver’s Match, a single tax filer must have an income of less than $35,500. The limit for joint filers is $71,000. The maximum match is 50% of the employee’s contribution.
Saver’s Match replaces the current Saver’s Credit, a non-refundable tax credit for low-income taxpayers. The big difference: Saver’s Credit only reduces the taxes you owe. Saver’s Match puts dollars into your retirement account.
Under President Trump’s order, workers can use the TrumpIRA.gov site to “filter and select IRAs based on cost and quality,” choosing from a list of private plan administrators with low administrative costs and no minimum contribution or balance requirements. This site is not limited to workers eligible to participate in Saver’s Match.
The initiative drew praise from AARP, an American advocacy group for senior citizens.
“Americans are 15 times more likely to save for retirement if they have access to a workplace savings plan, but about half of all private sector workers currently lack access to one,” said Bill Sweeney, AARP’s senior vice president for government affairs. “The bipartisan efforts of Congress and current administration leaders through today’s executive order and implementation of the Saver’s Match program will result in real progress in expanding access to retirement accounts.”
President Trump said he would call on Congress to take the time to expand the Trump IRA initiative and eventually expand access to the Saver’s Match to workers who make over the $35,500 income limit.
“We think there are a lot of people who earn more than that but don’t have any retirement assets,” said Kevin Hassett, the White House’s chief economic adviser.
The Trump administration is reportedly considering expanding a program that automatically enrolls workers who are not eligible for workplace retirement plans.
According to AARP, 20 states already have “automatic IRA” programs in place as a safety net for workers who don’t have access to retirement savings. The state program provides retirement savings to these workers through automatic enrollment. Workers can choose to opt out.
A new Morningstar report estimates that 32 million more workers would enroll in retirement savings plans if the federal government adopted an automatic IRA program.
New initiatives cost a lot of money. The libertarian Cato Institute, citing data from the Joint Committee on Federal Taxes, projects that funding Saver’s Match would reduce federal revenue by $9.3 billion between 2028 and 2032. The cost of automatic enrollment could exceed $20 billion.
“Policymakers are piling on new spending commitments with uncertain benefits to low-income households, on top of a system that already faces a $28 trillion shortfall,” said Romina Boccia, director of budget and entitlement policy at Cato.
Contributors: Swapna Venugopal Ramaswamy and Francesca Chambers
