President Trump Signs Executive Order on Retirement Accounts
On Thursday, President Trump signed an executive order designed to help millions of American workers enroll in retirement accounts.
The order also instructs the Treasury Department to set up a federal saver match program aimed at boosting individual retirement account (IRA) savings.
Here’s what you might find interesting regarding the new plans and the potential billions in federal matching funds available.
Who can participate in the retirement plan?
Starting January 2027, all Americans will have access to a new platform, TrumpIRA.gov, where they can explore and sign up for “high-quality, low-cost” IRA plans from various private financial institutions. The White House indicated that these plans are particularly aimed at U.S. workers lacking employer-sponsored retirement options, focusing on independent contractors, part-timers, small business employees, and the self-employed.
It’s estimated that around 41 million Americans aged 18 to 65 currently do not have access to an employer-funded retirement plan.
What kind of matching is offered by the government?
Individuals with a modified adjusted gross income (MAGI) of $20,500 or less may receive a federal match of up to $1,000, which equates to 50% of the first $2,000 they contribute to a workplace retirement plan or IRA, based on their 2027 tax return. For those earning slightly above this threshold, there is a scaled-down match available.
If you’re a joint filer, the income limits range from $41,000 to $71,000, and in this case, the maximum federal match is set at $2,000.
Are there other matching opportunities?
In a manner reminiscent of the initiatives presented by President Trump’s children, the government is open to private philanthropists contributing to retirement plans. The executive order also calls for the Treasury Department and the IRS to clarify how contributions made by charities and tax-exempt organizations can be treated for tax purposes when contributed to IRAs on behalf of eligible workers.
Do I need a Trump IRA to get the match?
Not exactly. Individuals and joint filers contributing to a qualified IRA can still qualify for a Federal Saver’s Match contribution, up to $1,000 for individuals or $2,000 for couples. However, the TrumpIRA.gov site will contain a list of financial institutions where IRAs can accept these Federal Saver’s Match contributions.
