President Trump is expanding the concept of a federal savings account for children to adults. Months after launching tax-deferred Trump accounts for those under 18, the president signed an executive order on April 30 creating tax-advantaged retirement accounts for workers without 401(k)s.
Here are seven key details to know about the “Trump IRA” order.
1. Trump IRAs will offer a $1,000 match from the government
Nearly 5 million children have enrolled in Trump accounts, and the $1,000 government matching contribution is cited as a key incentive. According to the order, Trump IRAs will also offer federal contributions up to $1,000.
This is a benefit derived from the Saver’s Match, a federal program that takes effect in 2027 and replaces a previous tax credit. It grants a 50% matching contribution of the first $2,000 (a total of $1,000) that an eligible low- to moderate-income saver makes annually to a retirement plan or IRA.
2. The plan is expected to offer low-fee investments from your choice of providers
TrumpIRA.gov, which is not yet live, would allow eligible savers to choose from providers offering “high-quality, low-cost individual retirement accounts.” That may include investment or balanced funds, target-date funds, model portfolios, and principal protection funds.
3. Income limits would apply
The program is intended for low- to moderate-income workers in small businesses, part-time employees, independent contractors, self-employed individuals, and other workers without access to an employer-sponsored retirement plan.
As currently designed, the government matching contribution reduces as income increases and phases out completely at an individual income of $35,500, or $71,000 for a couple.
4. Your state may sponsor a similar plan
According to ADP, more than 25 states have mandated retirement plan laws, and 15 have state-sponsored plans. Use this resource to find out if your state has such a mandate.
5. Unlike 401(k)s, there is no automatic enrollment
Like Trump accounts for children, Trump IRAs will require an eligible saver to enroll with the program. That process will be available when the government website is activated.
6. The Trump IRA may allow charitable contributions
Charitable contributions to a Trump IRA may be allowed, though guidance from the Internal Revenue Service is pending. That would allow for a worker with a tax-exempt organization to receive a contribution from their employer.
7. The Trump IRA will launch by January 2027
According to the executive order, the TrumpIRA.gov website will be active by Jan. 1, 2027.
Read more: Trump accounts vs. IRAs and 529s: How do they stack up?
