Can anyone explain to me how government funded healthcare is "socialism" but this isn't?
He is giving them access to the Federal Govt Worker Savings Plan but ONLY if they qualify for Low Income
What Donald Trump's new retirement plans mean for millions of Americans
President Donald Trump used his nearly two-hour State of the Union speech to unveil a proposal that would expand savings opportunities to 56 MILLION workers who currently lack access to employer-backed retirement plans.
Why It Matters
According to AARP, a nonprofit focusing on issues affecting older people, around 56 million private-sector workers are employed by companies that do not offer an employer-sponsored retirement plan. A 401(k)—a common U.S. workplace retirement account—allows employees to contribute a portion of their paycheck, often with tax advantages, and many employers match part of those contributions. Over time, the funds are invested and typically withdrawn in retirement.
While Trump touted gains in traditional 401(k) accounts during his administration, he argued that too many Americans remain shut out of workplace plans that offer employer matching contributions—a benefit widely seen as key to building long-term savings.
What To Know
In his address, Trump said millions of private-sector employees work for companies that do not provide retirement plans with matching contributions.
“To remedy this gross disparity, I am announcing that next year my administration will give these oft-forgotten American workers, great people, the people that built our country, access to the same type of retirement plan offered to every federal worker, we will match your contribution with up to $1,000 each year,” Trump said.
The accounts would be modeled on the federal government’s Thrift Savings Plan, which provides retirement savings options for federal employees.
According to Bloomberg, the White House intends to rely on an existing “Savers Match” created under the SECURE 2.0 Act, which was signed into law in 2022. The mechanism would be used to provide an annual $1,000 federal match for eligible low-income workers.
The proposal builds on earlier Republican-backed initiatives. Lawmakers last year passed the One Big Beautiful Bill Act, which established “Trump accounts,” a savings vehicle for children. Under the program, the Treasury Department provides a $1,000 credit for U.S. citizens born between 2025 and 2028, and families can contribute up to $5,000 annually.
Here is the Layout of the Savers Match Program that goes live to Federal Employees in 2027 that Trump claimed last night would be available to 56 MILLION Non Fed Govt Workers who don't have access to an employer sponsored retirement plan at work.
The Saver’s Match is a federal program starting in 2027 that provides a 50% government match on retirement account contributions for eligible low- and moderate-income savers.
Overview
The Saver’s Match, introduced under the SECURE 2.0 law, is designed to help Americans save for retirement by providing a direct government contribution to qualifying retirement accounts, such as IRAs or workplace retirement plans, rather than a tax credit applied to taxes owed. It replaces the non-refundable Saver’s Credit, which was limited in effectiveness because many low-income taxpayers could not fully utilize it.
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How
- Match Rate: 50% of contributions to eligible retirement accounts.
- Contribution Limits: Up to $2,000 per individual or $4,000 per couple, resulting in a maximum match of $1,000 for individuals and $2,000 for couples.
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- Direct Deposit: The match is deposited directly into the retirement account, making it immediately available for investment growth.
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- Eligibility: Based on household income. Single filers earning $20,500 or less receive the full match, with a phaseout up to $35,500. Married couples filing jointly receive the full match up to $41,000, phasing out at $71,000.
https://www.bing.com/ck/a?!&&p=d186...G93LWFuZC1taWRkbGUtaW5jb21lLXdvcmtlcnMv&ntb=1
So Basically he is stating that 56 MILLION US workers who don't have access to a Employee Sponsored Retirement Plan at work will be eligible to get a match of up to $1000 PER YEAR for this retirement plan.....If ALL 56 Million workers sign up...that will cost $56 BILLION PER YEAR to fund....
but , then we have to take into acct only very low income folks will qualify to be on it. if you make more than $20,500 per year you don't qualify for the full $1000 match and after $35,500 you don't qualify at all for the program
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