Trump Administration Unveils Two New Savings Initiatives

Retirement and Child Savings Programs Announced

The Trump administration has introduced two separate financial initiatives: a website designed to help workers compare private retirement savings plans, and a new child savings account program known as "Trump Accounts."

Retirement Savings Initiative

Executive Order and Website

President Donald Trump signed an executive order directing the Treasury Department to launch TrumpIRA.gov, a website for U.S. workers to compare private-sector retirement savings accounts. The initiative aims to assist approximately 50 million workers who lack employer-sponsored retirement plans.

Saver's Match Program

The Saver's Match program, established under a 2022 law signed by President Joe Biden, is scheduled to begin in January. It offers matching contributions:

• Up to $1,000 for single filers earning less than $35,000 annually
• Up to $2,000 for married couples filing jointly
• Maximum available to single filers earning under $20,500, with reduced amounts for those earning up to $35,500

Proposed Expansion

President Trump stated he will ask Congress to expand the program to include workers earning more than $35,000 per year. White House National Economic Council Director Kevin Hassett said the administration is working with Congress on legislation to expand the program.

Plan Structure

The president indicated private-sector workers would access a plan similar to the Thrift Savings Plan (TSP) , a 401(k)-style plan available to federal workers featuring low-cost, diversified, index-based investment options. A White House official described the new plan as a "universal, portable" account.

Child Savings Accounts (Trump Accounts)

Overview

Trump Accounts are IRA-style savings accounts for eligible children, offering tax-deferred growth.

The accounts have specific rules regarding contributions, withdrawals, and approved uses, and funds cannot be accessed before the child turns 18.

Eligibility Requirements

To be eligible, a child must:

• Be under 18 at the end of the year the account is opened
• Be a U.S. citizen
• Possess a valid Social Security number
• Each child is limited to one Trump Account

Accounts must be opened by an authorized individual, typically a legal guardian or parent.

Federal Government Contribution

Children born between January 1, 2025, and December 31, 2028, may receive a one-time $1,000 pilot contribution from the federal government.

This is contingent on an authorized individual opening an account and claiming the child as a dependent on their tax return.

Opening an Account

Parents can open an account by submitting IRS Form 4547, which also allows them to elect for the $1,000 pilot contribution. While currently submitted with the 2025 federal income tax return, an online portal for account establishment is expected to launch in summer 2025.

Parents are generally required to have a Social Security number, though an IRS individual taxpayer identification number is accepted for eligible nonresident or resident aliens.

Mobile Application

Treasury Secretary Scott Bessent announced that a mobile app for managing Trump Accounts is available on Apple and Google app stores. The app was developed by Robinhood and the Bank of New York, selected by the Treasury Department for this initial phase.

Account Activation and Deposit Timeline

• Starting in May 2026: The Treasury Department or its agent will send information for account activation
• The $1,000 government contribution will not be deposited before July 4, 2026, but will be made as soon as feasible after the account is opened and confirmed
• Accounts will officially open for investment on July 4, 2025, according to one source, while another states contributions commence on July 4, 2026
• Until July 4, the app offers eight financial literacy modules

Contribution Rules and Limits

Several parties may contribute to a child's Trump Account:

Note: The employer limit is per employee, not per child, and will be adjusted for cost of living after 2027.

Corporate and Philanthropic Commitments

Several major U.S. companies, including Charles Schwab, Robinhood, SoFi, Uber, Charter Communication, and BNY, have committed to matching the federal government's initial $1,000 contribution for children of eligible employees. Additional pledges are expected to be announced.

Michael Dell and his wife Susan have pledged $6.25 billion to establish savings accounts for up to 25 million American children.

This initiative will deposit $250 for every child aged 10 and under residing in a ZIP code with a median income below $150,000.

Investment Options

Investment options are limited to low-cost U.S. stock index funds and ETFs.

Financial Projections

The administration estimates that, based on historical stock market averages:

• A Trump Account initiated in 2026 with the $1,000 federal contribution could grow to $5,800 by the child's 18th birthday
• For families contributing the maximum $5,000 annually, the account is projected to reach $303,800 by age 18

Enrollment Status

• As of one source's publication, approximately 5 million out of 73 million eligible children are enrolled
• Another source reports nearly 6 million children already have Trump Accounts set up

Implementation Summit

President Donald Trump, joined by Treasury Secretary Scott Bessent, CEOs, and investors, is scheduled to host a summit in Washington, D.C. to promote the opening of these accounts by parents.

Key Considerations

Automatic Enrollment

The administration's retirement proposal does not include automatic enrollment.

Policy experts, including Mark Iwry, a former senior adviser to the Treasury during the Obama administration, have noted that auto-enrollment is considered crucial for effectively closing the retirement savings gap for those least likely to save on their own. Auto-enrollment has historically faced opposition from lawmakers concerned about imposing requirements on employers.

Potential Wealth Gap Impact

Higher-income families are more likely to navigate the enrollment process successfully, according to research cited by one source. When similar programs are automatic, participation is nearly universal; when opt-in, participation drops, especially among lower-income households.

Researchers Jin Huang and Stephen Roll argued in The Washington Post that the Treasury Department could automatically open accounts using Social Security numbers to remove enrollment barriers.

Missed accounts represent lost compound growth and may affect eligibility for need-based benefits like Supplemental Security Income (SSI) if accounts grow too large.