“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.”
President Donald Trump signed an executive order on Thursday that will create a new type of retirement account for employees who do not have access to a 401k or other retirement plan connected to their workplace.
The order will launch a new website, known as TrumpIRA.gov, where workers will be able to look at private-sector retirement plans through which those eligible will also be able to collect up to $1,000 in federal matching contributions.
"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.”
https://twitter.com/tpostmillennial/status/2049932467033780225?s=46
The order will integrate with the Saver's Match program, which goes into effect in 2027. Under those rules, single taxpayers with an income of $20,000 or those filing jointly with $40,000 or less will qualify for a government match worth up to $1,000 a year. Those who are single filers can have a reduced match if they have an income between $20,000 and $35,000, per CNBC. There are around 26 million full and part-time workers in the US who qualify for the full or partial Saver's Match and don't have an employment plan.
"As part of the Federal Savers Match program, Low Income Americans will be eligible to receive up to $1,000 per year in matching funds deposited directly into their accounts. This is a great thing for millions of Americans who lack employer-sponsored plans. This will be really revolutionary because they'll be covered," Trump said.
"For example, a 25-year-old who is eligible for the 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," he said.
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