Milken Institute Statement in Support of Executive Order Promoting Retirement-Savings Access for American Workers

The Milken Institute strongly supports the creation of TrumpIRA accounts. As announced, these new retirement savings accounts will be made available through a US government website offering retirement plans managed by financial services firms. These important accounts will provide a direct way for workers who do not have access to an employer-sponsored retirement plan to save for retirement. And they will have no minimum contribution or balance requirements, which will broaden plan access. 

As the US Department of the Treasury moves forward to establish a new federally sponsored retirement plan and promote participation (with a particular focus on independent contractors, self-employed individuals, and other workers who do not have access to an employer-sponsored retirement plan), the Milken Institute encourages bipartisan support for these accounts to be established through the creation of a federal program at TrumpIRA.gov. This platform will link to select financial institutions that offer IRAs that accept the Federal Saver’s Match and provide low-cost IRAs that allow for account portability for workers. The accounts will provide an excellent framework to create a new retirement plan structure for American workers who have historically been left out of retirement savings.

Significantly, these accounts will allow individuals who contribute to qualifying IRAs and who are entitled to the Federal Saver's Match contribution of up to $1,000, based on income, to have those funds deposited into these new retirement accounts. The connection to the Federal Saver’s Match will provide seed money and encourage contributions to these accounts. 

The Milken Institute highlighted the importance of encouraging retirement savings and expanding access to retirement plans in its comprehensive research report, Shifting the Retirement Paradigm: Moving Toward Lifetime Financial Security. 

“These portable, low-cost retirement accounts, which also provide for a government match of up to $1,000 for workers who need it the most, will help over 50 million more workers save for retirement, thereby helping to create a clear path for more Americans to live the American Dream,” said Cheryl L. Evans, director of Lifetime Financial Security, Milken Institute.

These momentous new retirement accounts, together with the Trump child retirement savings accounts (503(A) Trump Accounts), create meaningful change that will be felt for generations. The Milken Institute highlighted the impact of early-wealth-building accounts in its research report, The Economic Impact of Invest America Accounts, which outlined how such accounts would set children up for long-term financial security.   

As we consider the establishment of these IRA accounts, the Milken Institute believes that several features will be key to their long-term success and impact. We believe it is important for the accounts to be offered to eligible workers as they begin employment as an automatic or simple check-the-box option to encourage enrollment. We also believe that strict limits on withdrawals will enhance long-term saving, and the IRA accounts will need to be portable so they can easily follow workers who transfer jobs. Further, increasing the Saver’s Match income limits to allow more American workers to receive up to $1,000 in federal matching will be key for broader wealth-building. The Milken Institute welcomes the opportunity to work with the US Department of the Treasury and members of Congress on the establishment of TrumpIRA.gov accounts.