President Donald Trump signed an executive order on Thursday to help expand access to retirement savings accounts for Americans who do not have employer-provided plans.
“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 in the Oval Office. “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. 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.”
“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. For example, if a 25-year-old who is eligible for a Savers Match program invest 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.”
A White House official confirmed the planned order to FOX Business earlier Thursday.
The Trump administration’s effort will work in conjunction with 2022 legislation that instructs the federal government to match retirement-plan contributions for people earning below $35,000 with as much as $1,000 beginning next year,” Semafor reported.
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The president’s new order will instruct the Treasury Department to open a TrumpIRA.gov website by the time the matching opportunity takes effect in January, a White House official indicated. Workers will be able to utilize the site to filter private-sector retirement plans based on different factors so they can join one that would enable them to receive the match if qualified.
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The department will screen the plans on the site, but will not team up with certain financial institutions like it did with Trump Accounts, the official noted, according to Semafor.
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The order will instruct the Treasury Department to publicize the match and release information for those in the private sector who wish to give workers’ IRAs, the outlet reported, adding that the White House official compared the concept to the Dells’ pledge to seed Trump Accounts for kids.
Fox News’ Patrick Ward contributed to this report
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