New Trump order targets access to retirement savings plans and Saver’s Match

Body

President Donald Trump signed an executive order Thursday that directs the U.S. Treasury Department to create a new government website, TrumpIRA.gov, to help people in the United States find and compare private-sector retirement savings accounts. Trump said the effort is aimed at workers who do not have employer-sponsored retirement plans, describing it as a way to connect them to coverage comparable to what federal workers have.

The executive order is intended to prepare people for the next phase of federal support scheduled to begin in the following year, when the government will start matching retirement contributions made by lower-income workers. The match, known as the Saver’s Match, is authorized by 2022 legislation signed under Democratic President Joe Biden, the Associated Press reported.

At the signing ceremony, Trump described the change as addressing what he called a “gross disparity,” saying in remarks at the Oval Office that the administration will give “often-forgotten” workers access to a retirement plan similar to the one offered to federal employees. He said the program would be “really revolutionary” for millions of Americans who lack employer-sponsored plans because they would be “covered,” while he reiterated that the order is not creating a new retirement plan but helping match workers with existing private plans.

Under the Saver’s Match program, the maximum match for single filers is $1,000, and the maximum for married couples filing jointly is $2,000, according to details Trump discussed. The Associated Press also reported that the maximum for single filers would be limited to those earning less than $20,500, with smaller matches available for those earning up to $35,500. The match applies to contributions made toward 401(k) plans as well as IRAs and Roth IRAs.

Kevin Hassett, director of the White House’s National Economic Council, said at the ceremony that the administration is working with Congress to expand the Saver’s Match program. Hassett said the administration is looking forward to legislation this year, and he described the goal of reaching middle-income earners who also lack access to employer retirement plans that include matching contributions.

The Associated Press article was corrected to reflect the income threshold for the Saver’s Match benefit as $35,500, not $46,000.