President Trump has signed an Executive Order (EO) directing Treasury to make available through the federal government low-cost and in some cases subsidized IRAs. The TrumpIRA.gov program is targeted towards people who do not have access to employer-sponsored retirement savings plans, and to lower and middle-income Americans.

Some Washington insiders are calling the TrumpIRA.gov retirement savings program a federal marketplace for IRAs. Under current law, it would centralize information and access to IRA products that already exist under current rules. However, the EO tells Treasury to seek from Congress legislation that would allow enhancements to IRA products available under current law.

The Administration envisions low-cost IRA products offered through TrumpIRAs.gov. The Trump proposal would require participating IRA providers to assure that any IRA available through the government would accept Saver’s Credit matching contributions from the government. It also contemplates making sure that the investments available through a Trump IRA are the same as or substantially similar to the investment options available through the federal Thrift Savings Plan.

Specific requirements of the new program, which is targeted for a 2027 launch date, are still being developed, and legislation will be required to make the program as robust as President Trump envisions. Administration personnel say the program’s policy goal is to help more people save by making it easier for those without a workplace retirement plan to find and compare savings options.

TrumpIRA.gov builds on state retirement programs and is in many ways similar to the now-shut down MyRA program created during the Obama Administration. The MyRA program did not attract as many participants as its designers had hoped. Some say that was due, at least in part, because without employer sponsorship (and/or matching contributions) lower-income individuals did not know about, understand, or feel they could afford to participate in the program.

Prospects: There is considerable bipartisan interest in the TrumpIRA.gov idea, but whether it succeeds will likely depend on enactment of enhancing legislation and successful promotion of it among the targeted population of potential participants. It is too soon to predict whether the bipartisan interest in the program will overcome the current bitter partisanship that marks almost all legislative initiatives. Implementing details, the program’s projected cost, and competition for lawmaker attention in the short time remaining prior to the end of this Congress this year will also influence the chances for the program’s success.

NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.