Trump Orders Creation of IRA Comparison Site

The Saver's Match, part of the Secure 2.0 Act, replaces the Saver's Credit starting Jan. 1, 2027. Individuals earning up to $20,500, or couples earning up to $41,500, can receive a 50% federal match on up to $2,000 per person in retirement savings. The match is reduced as income rises and phases out completely at $35,000 and $71,000; the income thresholds will be adjusted for inflation.

The Treasury secretary and IRS commissioner are directed to issue guidance "clarifying the tax treatment of contributions made by philanthropic and charitable tax-exempt organizations to IRAs on behalf of eligible workers," according to the order.

"Roughly 41 million American workers between ages 18 and 65 lack access to any employer-provided retirement plan, and 49 million full-time workers and 14 million part-time workers do not receive an employer match to their retirement savings contributions," Trump's order said.

TrumpIRA.gov, the order states, "will maximize public awareness of the Saver's Match, ensuring that it reaches its full potential and boosting participation, particularly among workers who historically had no clear path to retirement savings and wealth building."

Rep. Richard Neal, D-Mass., ranking member on the House Ways and Means Committee applauded the Saver's Match, made possible by the Secure 2.0 Act.

"Millions of American workers still lack the benefit of employer-sponsored retirement plans to get a fair shot at a retirement," Neal said. "As Chairman of the Ways and Means Committee, I wrote and guided Secure 2.0 into law, making saving easier, and now, that legacy is driving today's executive order. Because of our Saver's Match, low- and moderate-income Americans will have the opportunity to receive up to $1,000 in matching contributions from the federal government."

Added Neal: "Governing by executive order doesn't produce the durable, sustaining results that the people deserve, and the Trump Administration's habit of rolling out flashy, Trump-branded websites one week and forgetting to follow with any substance the next is another reason why Congress must take the lead here. The most serious path forward to protect and expand savings opportunities for workers is my automatic IRA bill. It's a proven pathway and advancing it legislatively ensures lasting help to those who need it most."

Mark Iwry, a former senior advisor to the Treasury secretary on retirement policy who's now a nonresident senior fellow at the Brookings Institution, told ThinkAdvisor Thursday in an email that the administration "appears to be stepping back from the idea of establishing a new government plan for private sector citizens with its own TSP-like government match, recognizing industry's strong opposition and the threat that a 'TSP-for-all' public option could crowd out employers' 401(k)s, which cover some [67] million American workers."

The administration's approach, Iwry added, "is starting to look increasingly aligned with the Auto IRA legislation being successfully piloted by 17 states and sponsored by Congressman Neal, who will chair the Ways and Means Committee if Democrats take the House in the midterms."

Christopher Gandy, president of the National Association of Insurance and Financial Advisors, said the group "looks forward to learning more about the administration's proposed retirement savings initiative and working with policymakers to strengthen awareness, understanding, and use of the retirement plans and financial tools already available to workers and families."

Credit: Wikimedia Commons