Trump signs executive order expanding workers’ access to retirement plans

Key Points:

• President Donald Trump signed an executive order to advance his retirement savings proposal aimed at closing the retirement coverage gap for over 50 million low- and moderate-income private-sector workers lacking employer-sponsored plans.
• Starting next year, workers will be able to open low-cost IRA accounts through TrumpIRA.gov, with providers required to keep annual fees below 0.15% and no minimum contribution or balance requirements.
• The order promotes the federal Saver’s Match program, which offers up to $1,000 for individuals and $2,000 for couples saving in qualified retirement plans, targeting low- and moderate-income workers earning under $35,500 individually or $71,000 jointly.
• The administration plans to increase awareness of the Saver’s Match and work with Congress to expand eligibility and codify policies ensuring low-fee retirement options with diversified investments and portability for workers without employer plans.
• While a Morningstar analysis estimates automatic enrollment could add 32.3 million savers, the voluntary nature of Trump’s plan may result in fewer participants unless Congress authorizes auto-enrollment.