In his State of the Union speech earlier this year, President Trump proposed giving private-sector workers without employer-sponsored retirement plans access to new tax-advantaged accounts similar to those available to federal employees.
On Thursday, Trump signed an executive order establishing the accounts and directing the Treasury Department to create an online marketplace where people can choose a plan. Workers making $35,500 a year and $71,000 for married couples will be able to claim up to $1,000 in matching funds from the government. The website, which is not yet live, will be at TrumpIRA.gov.
In his speech, he said the accounts would help “often-forgotten American workers” reap the benefits of market gains.
This type of plan was first authorized in 2022 with the passage of the SECURE Act.
The president’s action comes at a time when the typical American worker has less than $1,000 saved for retirement, according to the National Institute on Retirement Security.
One driving factor for that shortfall: Many workers lack access to employer-provided retirement plans. Roughly half of US workers don’t have workplace plans that divert money straight from their paycheck into a retirement account and frequently include a matching employer contribution.
WASHINGTON, DC – APRIL 30: U.S. President Donald Trump answers questions during an executive order signing in the Oval Office of the White House on April 30, 2026 in Washington, DC. President Trump signed multiple executive orders including one to expand retirement account access for workers. (Photo by Andrew Harnik/Getty Images) ·Andrew Harnik via Getty Images
Trump’s proposal “may reduce the coverage gap affecting millions of low- and moderate-income workers,” Teresa Ghilarducci, a labor economist at the New School and the author of “Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy,” wrote in an email. “Every worker should be covered by a retirement plan, in addition to Social Security, and enrolled automatically as they are in Social Security.”
Trump’s plan is based on the Savers Match program that is due to start in 2027.
Under that program, the federal government will make a matching 50% contribution to an eligible worker’s IRA or 401(k)/403(b) plan. The match — as much as $1,000 for individuals and $2,000 for couples — would come in the form of a federal tax credit. To be eligible for a full or partial match, individuals must earn less than $35,500; for couples, the limit is $71,000.
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Ghilarducci, who has partnered with National Economic Council Director Kevin Hassett on developing solutions for the retirement savings dilemma, said a federal match “substantially increases participation among low- and moderate-income workers.”
“This executive action does not change the voluntary architecture that has produced large wealth gaps,” she cautioned.
Still, it’s a step. “This is one of the more substantial administrative interventions in recent decades to fix a substantial failure of our current system — the persistent coverage gap,” Ghilarducci said.
What states are already doing
A growing number of states have passed laws in recent years to help workers save for retirement. These include Oregon, Colorado, Connecticut, Maryland, Illinois, California, and Virginia.
Currently, 20 states have enacted new programs for private-sector workers, and 17 of those states have auto-IRA programs. By the end of 2025, more than 1 million workers had opened accounts.
Read more: Step-by-step guide to retirement planning
They require most private employers that don’t sponsor a savings plan of their own to enroll workers in a state-facilitated individual retirement account (IRA) at a preset savings rate — usually 3% to 5% of earnings — which is automatically deducted from paychecks. The plans typically ramp up an employee’s contribution by 1% each year until it reaches 10% unless an employee opts out.
“The state programs provide a simple, easy option so they can start saving quickly,” said John Scott, retirement savings project director at Pew Charitable Trusts.
Eligible businesses with 50 or fewer employees can qualify for a credit equal to 100% of the administrative costs for establishing their own workplace retirement plan.
“I’m excited that the president chose to highlight the importance of providing access to workplace savings plans to all working Americans and the idea of providing a form of government contribution,” Scott told Yahoo Finance after Tuesday’s speech.
“While we can’t make any judgments until we see the details of the proposal, these pronouncements as a whole are a step in the right direction,” he said.
Scott added, “Pew has worked very hard to extend workplace retirement savings opportunities at the state level. So, the President’s comments on improving retirement savings are appropriate and welcome.”
Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including “Retirement Bites: A Gen X Guide to Securing Your Financial Future,” “In Control at 50+: How to Succeed in the New World of Work,” and “Never Too Old to Get Rich.” Follow her on Bluesky and X.
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