Retirement Retirement Planning

Millions Without 401(k)s Could Get a New Option Soon - Here's What Trump Is Proposing

This could make retirement a reality for many Americans.

By Catherine Collins

Edited by Laura Hohenstein

Updated March 17, 2026

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President Donald Trump gave his State of the Union Address at the end of February 2026. During this address, he discussed launching a new retirement plan for people who do not have access to one through their employer. As part of this retirement plan, President Trump said that the government will match contributions up to $1,000 each year.

These plans could benefit millions of Americans who do not currently have a retirement account. However, it's unknown how these plans will be funded or when they'll be rolled out and accessible to the public.

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Millions of people don't have access to 401(k) plans

A whopping 56 million Americans do not have 401(k) plans, according to data from the Pew Charitable Trust. This big gap in access to retirement accounts is why the Trump administration wants to offer new accounts with matching contributions to Americans who want to invest for their retirement years. The National Institute on Retirement Security notes that when people do not have access to a retirement plan, it's unlikely that they are saving for their retirement at all.

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The benefit of President Trump's new 401(k) option

Though the public is still waiting on more details about the new 401(k) plan, one of its benefits is that employees will be able to use it even if they change jobs. This is a benefit because many people forget about 401(k) plans or leave them behind when they change jobs. According to recent data from Capitalize, the assets and forgotten 401(k) plans exceed $2 trillion. Though it seems impossible that someone could forget about a retirement account, this usually happens because of job switching and layoffs.

Salary thresholds for President Trump's new 401(k) plan.

It is unclear whether or not President Trump's new 401(k) plan will have salary thresholds. Research shows that the vast majority (nearly 80%) of people without access to employer-sponsored 401(k) plans earn less than $53,000 annually. Because of that, there are some critics of the plan who say that many people who are working class are not able to contribute even $1,000 annually to a retirement account because they are struggling to afford their basic needs.

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How the new 401(k) plans will be modeled

There are many types of 401(k) plan providers. Some 401(k)s offer different assets than others, and some plans might be more expensive to manage. In other words, not all 401(k)s are created equally. President Trump's 401(k) plan will be modeled after the Thrift Savings Plan, which is the federal employee retirement plan. Traditionally, these plans provide government workers with access to low-cost assets and a government match.

These 401(k) plans will build on the Savers Match from the Secure 2.0 Act

The Secure 2.0 Act, which was passed in 2022, included several retirement plan policy changes that will take effect in 2026 and 2027. One of them is the Saver's Match. The Savers match is a program that gives taxpayers a $1,000 match for contributions of the first $2,000 to a retirement plan. However, this match is limited to people with access to 401(k) plans and to those with income below a certain threshold. The new 401(k) plan will build on this concept of rewarding retirement investors with a match, but will be available to people who do not have access to a 401(k) through their employer.

Detractors worry that no proposal has been released yet.

As mentioned, some critics of this 401(k) plan worry that even if the plan exists, people will not be able to create enough cash flow to invest in it. Other critics are concerned that the administration has discussed these 401(k) plans only as a concept. However, the Trump Administration has not released an official policy proposal, details on how the plan will be funded, or details on how contributors may be taxed.

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How to learn more about the new 401(k) plans

President Trump's new 401(k) plan was announced at the end of February 2026. So, more details about the plan, eligibility, how to sign up, and the requirements should be forthcoming. Currently, there is no proposed budget or legislative text that outlines how the plan will be implemented. However, by following the news and keeping tabs on this topic, you'll hear new announcements as soon as they come out.

Bottom line

Every American wants to enjoy a stress-free retirement, but not everyone has access to a 401(k) plan. President Trump's new 401(k) plan aims to help those who do not currently have access to a retirement plan and to incentivize them to contribute by offering a match. Though Americans do not yet have all the details about this new plan, they should know more soon.

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