New executive order creates federal match of up to $1,000 annually for uncovered workers investing in low-cost index funds.
President Trump’s executive order introduces American Dream Accounts, a retirement vehicle for 50 million workers without employer-sponsored plans. The program offers a federal match of up to $1,000 annually on contributions invested in low-cost index funds.
Workers starting at age 25 could accumulate $570,000 by 65, while those beginning at 55 would yield only $34,000. Auto-enrollment, requiring congressional approval, is critical as voluntary enrollment historically captures just 50% of eligible participants.
The initiative aims to close the gap for gig workers, freelancers, and small business owners who lack access to employer matches, currently available only to W-2 employees.