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The administration will integrate its push with the so-called Saver’s Match, 2022 legislation that directs the federal government to match retirement-plan contributions from workers making less than $35,000 with up to $1,000 starting next year.
Semafor first reported in February that officials were exploring the idea, which the president later confirmed during his State of the Union address.
About 54 million people who work full- or part-time do not have access to an employer-provided retirement plan, according to the Economic Innovation Group. Some 27 million who qualify for the Saver’s Match do not have access to a plan where they can collect it.
Thursday’s executive order will seek to fix that by directing the Treasury Department to launch a new website, TrumpIRA.gov, by the time the Saver’s Match takes effect in January, one of the officials said. Under the order, workers could use that website to filter private-sector retirement plans by factors like cost, minimum contribution, and minimum balance so they can enroll in one that would allow them to collect the match if eligible.
The official told Semafor that the structure was chosen to give workers access to a more lucrative mix of investments akin to the government’s Thrift Savings Plan. A government-run IRA for private-sector workers, like former President Barack Obama’s now-defunct myRA, would likely have been constrained to Treasury bonds, which have a lower rate of return.
Treasury will vet the plans on the website — but not partner with specific financial institutions as it did with recently enacted Trump Accounts, the official said.
The website is not expected to bigfoot states that require employers that don’t provide retirement plans to automatically enroll their workers in a state-run IRA.
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