President Donald Trump signed an executive order on Thursday to expand access to retirement savings accounts for Americans without employer-sponsored plans.
The order calls for the creation of a new website, TrumpIRA.gov, where workers will be able to enroll in low-cost individual retirement accounts beginning next year.
“Beginning at the start of next year, every American will be able to go to TrumpIRA.gov and open a new low-cost IRA account,” Trump said during a signing ceremony at the White House, Fox Business reported. “You’ll then be able to access the same type of retirement accounts that federal employees enjoy through the Thrift Savings Plans, which are incredible.”
The initiative is designed to address a gap affecting millions of workers who lack access to workplace retirement plans. Officials say the new accounts will function similarly to those offered to federal employees.
As part of the effort, lower-income Americans will be eligible for matching contributions from the federal government through an existing program set to begin next year.
“As part of the Federal Savings Match program, low-income Americans will be eligible to receive up to $1,000 per year in matching funds deposited directly into their accounts,” Trump said.
The executive order aligns with a 2022 initiative that provides matching retirement contributions for individuals earning below certain income thresholds. Under that program, eligible workers can receive up to $1,000 annually in matching funds.
“The great thing for millions of Americans who lack employer-sponsored plans, this will be really revolutionary because they’ll be covered,” Trump said. “Nobody thought that was possible.”
Trump also highlighted the potential long-term benefits of early savings.
“For example, if a 25-year-old who is eligible for a Savers Match program invests just $165 a month under the matching federal contributions, they will have an estimated $465,000 in their account by the time they’re 65 years old. In other words, they’ll be rich. And there’s something awfully nice about that,” he said, per Fox Business.
The Treasury Department is expected to oversee the website’s rollout and provide information on qualifying retirement plans. Workers will be able to compare private-sector options based on factors such as cost and contribution requirements.
Trump said he plans to ask Congress to expand the program in the future to include higher-income workers.
“It only seemed fair,” he said, per USA Today. “Promises made, as I say. Promises kept.”
