During Monday night’s State of the Union, President Trump promised to provide employees without an employer-provided retirement plan with a $1,000 annual contribution match as part of a new government-backed retirement savings initiative.
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Forget margin or options. Here's how the pros trade QQQ“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,” Trump said. The plan was first approved under the SECURE Act in 2022, with a White House spokesperson adding that more details will be provided in the coming weeks.
Trump Targets Retirement Savings Gap With Federal Match
Around half of U.S. employees don’t have access to employer-sponsored retirement plans with automatic payroll contributions and matching. In addition, a study from the National Institute on Retirement Security shows that the average American worker has less than $1,000 saved for retirement.
Trump’s proposal builds on the Saver’s Match program, which is scheduled to begin in 2027. The program allows individuals making less than $35,500 per year to receive a 50% contribution match up to $1,000 in the form of a federal tax credit. Couples making less than $71,000 are eligible to receive up to $2,000 from the 50% match.