Trump Makes Major Change to Retirement Plans — and Order Could Impact 56M Americans

President Trump has signed an executive order to create retirement accounts for tens of millions of workers who don’t currently have access to a 401(k) or another workplace plan.

“I promised to make the same types of retirement accounts enjoyed by federal employees available to all Americans, and that’s what we’re doing. It only seemed fair,” he said during the signing ceremony in the Oval Office.

Low-income earners without an individual retirement account (IRA) through their employer will receive a yearly federal matching contribution of up to $1,000 each, the president noted.

That designation applies to individuals making less than $35,500 annually, heads of household making $53,250 per year, or couples making $71,000 each year jointly.

“This will be really revolutionary because they’ll be covered,” Trump said in the Oval Office.“Nobody thought that was possible. For example, if a 25-year-old who is eligible for a Saver’s 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 added. (Read more from “Trump Makes Major Change to Retirement Plans — and Order Could Impact 56M Americans” HERE)

Photo credit: Gage Skidmore via Flickr