President Donald Trump signed an executive order Thursday creating a new way to save for retirement for workers who currently don’t have access to 401(k)s or other workplace plans.
Approximately 56 million Americans do not have access to an employer-sponsored retirement plan at work, according to a 2025 study by the Pew Charitable Trusts, an independent nonprofit public policy organization.
The order calls for the launch next year of a new website, TrumpIRA.gov, where workers can research, compare and enroll in private sector individual retirement accounts and, if eligible, collect matching contributions from the federal government.
“We’re going to have access to the same kind of retirement accounts that federal employees enjoy through their Thrift Savings Plan, which is amazing. It’s part of the Federal Savers Match Program,” President Trump said at a White House press briefing. “Low-income Americans are eligible to receive up to $1,000 annually in matching funds deposited directly into their accounts.”
These accounts will be integrated with Saver’s Match, a provision of the 2022 law known as Secure 2.0, which will provide low-income Americans with matching contributions of up to $1,000 toward their retirement savings.
Now, the Trump administration wants to work with Congress to pass legislation that would expand access to the program and make the matches bigger.
Two proposed bills in 2025 could help provide a framework for Congress to do just that, and aspects of each could be highly beneficial to American retirement savers, according to research and investment research firm Morningstar released Thursday.
The researchers found that implementing several of the provisions proposed through the Retirement Outcomes Model, including expanded access to matching contributions, automatic enrollment, and increased matching values, could increase cumulative U.S. retirement assets by up to 77%, reaching estimated retirement assets of up to $1.35 trillion over 10 years.
How the law extends the executive order
President Trump’s executive order targets Americans who currently do not have access to workplace retirement accounts or matching contributions from their employers.
About 40.6 million full-time American workers are not enrolled in a retirement plan, and about 48.8 million do not receive the benefit of an employer match, according to White House statistics.
Once you integrate your new account into Saver’s Match, you’ll gain access to some of your accounts.
Starting in tax year 2027, single taxpayers with modified adjusted gross income up to $20,500 or joint filers with up to $41,000 are eligible for a government match of up to $2,000 equal to 50% of contributions to qualified retirement accounts up to $1,000 annually. Single filers with annual incomes between $20,500 and $35,500 are eligible for reduced matching contributions. Joint filers making up to $71,000 may qualify for a reduction match.
At President Trump’s press conference, National Economic Council Director Kevin Hassett called for legislation that would expand benefits to more Americans. “We are working with Congress to significantly expand this program and look forward to its passage this year.”
Hassett previously supported the Americans Retirement Savings Act, a bicameral bill reintroduced to Congress this week. This bill was first introduced in 2022. Congress could also take advantage of the Auto-IRA Act, which was reintroduced in December but was first introduced nearly 20 years ago by Rep. Richard E. Neal (D-Mass.).
It remains to be seen whether Congress will rally around a single bill or incorporate elements from multiple sources to pass reforms through a reconciliation process, as Treasury Secretary Scott Bessent hinted at when President Trump first floated the idea in February’s State of the Union address.
Here are some of the main provisions for each.
Americans Retirement Savings Act
Full-time and part-time workers who do not have access to an employer-sponsored plan are eligible for an account and will be automatically enrolled for 3% of their income. Low- and moderate-income workers would be eligible for an automatic 1% contribution and up to a 4% matching contribution from the federal government, which would be phased out at median incomes.
automatic IRA method
Requires employers with more than 10 employees that do not sponsor a retirement plan to automatically enroll employees in IRAs. The default contribution rate for employees is 6%, which increases by 1 percentage point per year to a maximum of 10%.
How proposed legislation could improve retirement outcomes
Morningstar researchers took aspects of both plans into account when measuring the effectiveness of the enhanced version of President Trump’s order, said Spencer Look, associate director of retirement research at Morningstar Retirement and one of the study’s co-authors.
They arrived at a “base case” for the simulation. This included automatic enrollment in a retirement plan with a 3% savings rate. Under this scenario, Morningstar estimates that 32.3 million new savers would join the plan, resulting in an overall 28% increase in retirement assets.
The big difference between all of Morningstar’s simulations, Look said, is automatic enrollment.
“If it’s structured like a voluntary subscription, you’re not going to expect a lot of support,” he said, adding that letting people opt out of retirement plans rather than opt in would be a key way to “change direction.”
The researchers also played around with other levers. It increased the Saver’s Match multiplier from 50% to 100% and raised the income cap for single filers from $35,500 to $60,000. They tested a program with an automatic contribution rate of 3% and a gradual increase from 3% to 6%. They ran a scenario where the rules barred savers from accessing matching funds until age 62.
According to Morningstar, each of these provisions will help Americans save more, and all together would increase U.S. retirement assets by 77%, with a particularly large impact on low-income households.
No matter what legislation ultimately becomes law, the key for retirement savers is to consistently add to their portfolio over time, Look said. According to Morningstar research, workers who have been continuously enrolled in a retirement plan for 10 years or more could see their retirement assets grow by 67% to 125% under an automatic enrollment scenario.
“The finding that underpins all of this is that consistent saving behavior — saving consistently over time — is the biggest determinant of growing your nest egg,” Look says.
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