President Trump said in his State of the Union address that Americans without access to a workplace retirement plan would be able to invest through a federal-style option similar to the Thrift Savings Plan used by federal workers, and that the government would match contributions up to $1,000 per year.
The plan would be available for “forgotten American workers, great people, the people that built our country, access to the same type of retirement plan offered to every federal worker,” Trump said. “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.”
The White House has not released details on how the plan would work.
Around 30 percent of the U.S. private sector workforce lacks access to an employer retirement plan.
Trump described the gap in retirement-plan access as a “gross disparity” and said the proposal would extend to “forgotten American workers” the same type of retirement plan available to federal employees. He also pledged to protect Social Security, Medicare, and Medicaid.
Trump also touted the administration’s new Trump accounts, tax-advantaged savings accounts for children that can be converted into a Roth IRA after a child turns 18.
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