- with readers working within the Transport industries
Each week while Congress is in session, our Policy team delivers a key update to highlight a topical benefits, health, or retirement news item from the Hill, such as a newly introduced bill, a summary of a committee hearing, or another hot-button matter.
In the State of the Union address on February 24, President Trump said the following about a possible Administration proposal to allow workers to have access to a new type of retirement plan like that offered to federal workers:
Your 401(k)s are way up. Yet half of all of working Americans still do not have access to a retirement plan with matching contributions from an employer. To remedy this gross disparity, I'm announcing that next year my administration will give these oft-forgotten American workers, great people, the people that built our country, access to the same type of retirement plan offered to every federal worker. We will match your contribution with up to $1,000 each year, as we ensure that all Americans can profit from a rising stock market
The White House has not yet released a detailed proposal but since the speech senior Administration officials have indicated the following:
- The White House is planning to issue an Executive Order on the proposal in the next few months.
- The $1,000 matching contribution is the refundable Saver's Match that was enacted as part of SECURE 2.0 in 2022 and becomes effective in 2027. Under the provision, eligible individuals can receive a direct, government matching contribution to their retirement plan of up to 50% of the first $2,000 of contributions.
- The Administration may propose changes to the Saver's Match to make it more generous and expand its availability to more retirement savers.
- The Administration is also focusing on possibly establishing a federally-facilitated IRA product that could offer index fund investments similar to those offered under the Federal Thrift Savings Pla
- Any such proposal would likely be similar to and build off of the infrastructure currently being put in place to administer Trump Accounts.
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