{"id":590468,"date":"2026-04-08T15:25:10","date_gmt":"2026-04-08T15:25:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/590468\/"},"modified":"2026-04-08T15:25:10","modified_gmt":"2026-04-08T15:25:10","slug":"trumps-401k-plan-who-might-benefit-and-who-wont","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/590468\/","title":{"rendered":"Trump\u2019s 401(k) Plan: Who Might Benefit and Who Won\u2019t"},"content":{"rendered":"

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\/ Shutterstock \/ \/ Shutterstock<\/p>\n

During President Donald Trump\u2019s Feb. 24 State of the Union address, he lamented the gap in the United States\u2019 retirement system.<\/p>\n

Specifically, he noted that there are approximately 56 million citizens who have no employer-sponsored savings plans (in which retirement<\/a> savings are bolstered with matching contributions from an employer).<\/p>\n

Be Aware: Trump Promised Tax Relief for Seniors \u2014 Here\u2019s What Retirees Are Seeing Now<\/a><\/p>\n

Learn More: How Middle-Class Earners Are Quietly Becoming Millionaires \u2014 and How You Can, Too<\/a><\/p>\n

Calling this gap a \u201cgross disparity,\u201d Trump announced a government solution to the problem<\/a>.<\/p>\n

Trump\u2019s 401(k) Plan<\/p>\n

Per CBS News<\/a>, Trump\u2019s plan is essentially based upon the Thrift Savings<\/a> option available to federal employees, in which the federal government provides matching contributions up to $1,000 per year.<\/p>\n

Trump\u2019s initiative would expand on the Secure Act 2.0 that was signed by President Joe Biden in 2022, with the federal government providing 50% matching contributions up to $1,000<\/a> for eligible low-income workers. It will also allow access to low-fee investment funds for stocks and bonds.<\/p>\n

Try This: Warren Buffett\u2019s Advice To Prepare for a Recession Is S-Tier<\/a><\/p>\n

Who Benefits?<\/p>\n

\u201cThe biggest winners are gig workers and employees at small businesses that can\u2019t afford to run a traditional 401(k)<\/a>,\u201d according to Maitland Wealth<\/a> publisher Steve Maitland \u2014 whose research often focuses on the structural elements of the retirement industry.<\/p>\n

\u201cThe whole appeal of the Thrift Savings Plan model is its simplicity and rock-bottom fees,\u201d Maitland continued. \u201cIf lawmakers can replicate that structure for the general public, it removes many of the cost barriers that typically keep middle-income workers out of the retirement market.\u201d<\/p>\n

Who Won\u2019t Benefit?<\/p>\n

\u201cMass-brokerages could lose out because a low-cost, government-backed public option cuts of their pipeline of entry-level investors,\u201d Yehuda Tropper, CEO of Beca Life Settlements<\/a>, told GOBankingRates. \u201cIf everyday workers are given a portable plan with rock-bottom fees and potential federal matches, they are a lot less likely to open or maintain higher-fee retail IRAs. Volume-dependent brokerages would then face downward pressure to lower their margins to stay competitive.\u201d<\/p>\n

Maitland added that older workers are less likely to benefit, as well.<\/p>\n

\u201cJust handing someone an account doesn\u2019t magically create retirement savings,\u201d he noted. \u201cIf you\u2019re within five to 10 years of retirement, gaining access to this now probably won\u2019t move the needle much because you simply don\u2019t have the time horizon for compound growth<\/a>.\u201d<\/p>\n

Editor\u2019s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com<\/a>.<\/p>\n

More From GOBankingRates<\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: Trump\u2019s 401(k) Plan: Who Might Benefit and Who Won\u2019t<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"\/ Shutterstock \/ \/ Shutterstock During President Donald Trump\u2019s Feb. 24 State of the Union address, he lamented…\n","protected":false},"author":2,"featured_media":590469,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132,862,42767,12985,22366,224879,224878,67120],"class_list":{"0":"post-590468","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-finance","12":"tag-personal-finance","13":"tag-personalfinance","14":"tag-president-donald-trump","15":"tag-president-joe-biden","16":"tag-retirement-savings","17":"tag-shutterstock","18":"tag-state-of-the-union-address","19":"tag-steve-maitland","20":"tag-thrift-savings-plan"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/590468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=590468"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/590468\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/590469"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=590468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=590468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=590468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}