Trump's 401(k) Replacement Could Change Everything: Jaspreet Singh on What You Should Do Now
President Donald Trump recently signed an executive order that could reshape how tens of millions of American workers save for retirement. Those who don’t have access to a 401(k) will now have the Trump IRA beginning Jan. 1, 2027. The main goal for this plan is to ensure that everyone has access to a low-cost retirement-savings option.
In a YouTube video, personal finance expert Jaspreet Singh breaks down how Trump is quietly replacing 401(k) plans. Here’s what that means for your retirement and what you should do.
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What the 'Trump IRA' Is Actually Referring To
According to the Pew Charitable Trusts, roughly 56 million Americans don’t have access to employer-sponsored retirement plans. That's the problem the Trump IRA is designed to solve.
"For millions of Americans who lack employer-sponsored plans, this will be really revolutionary, because they'll be covered," Trump said at the signing.
Remember that this is not a new government retirement plan. It's a federally facilitated marketplace that connects low-income workers to low-cost private-sector retirement plans with a government match.
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The 3 Problems With 401(k) Plans the Government Is Trying To Fix
According to Singh, the current 401(k) has three problems the Trump administration is trying to fix:
Access: If your employer doesn't offer a 401(k), you don’t have access to this retirement plan. That’s the current situation for independent contractors, self-employed individuals and other low-income workers.
Fees: According to Kiplinger, the average 401(k) fee in 2025 is 1.26%, Singh said. If you invest $500 a month for 30 years at an 8% return, and a 1.26% fee, it will cost you roughly $139,000 in lost wealth over your career. The Trump IRA caps fees at 0.15%, which is way cheaper.
Portability: If you quit your job or switch jobs, it’s difficult to transfer your 401(k) plan, but that's not the case with the Trump IRA.
Who Qualifies for the Match?
The Trump IRA offers up to a $1,000 match for single filers and $2,000 for married couples filing jointly.
“This $1,000 contribution is not a one-time contribution,” Singh said. “This is a potential $1,000 contribution every year by the government into your retirement as long as you qualify.”
To qualify, you must meet specific income requirements. Single filers need to be making $20,500 or less a year, while joint filers $41,000 or less annually for a full match. There’s a catch though; you must contribute at least $2,000 a year to get the $1,000 match.
If you’re making more than this, it doesn’t mean you don’t qualify for the Trump IRA. Single filers with incomes under $35,500 and $71,000 for joint filers will get a reduced match.
What You Should Do Right Now
According to Singh, you should know where the money is going.
“It’s estimated that this Trump IRA is going to lead to somewhere between $32 billion to $68 billion of new dollars entering the stock market,” he said.
When more money enters the stock market, people will see more price swings. In most cases, this creates better buying opportunities for good investments. There are several ways to invest in the stock market, and Singh said the simplest way is through index funds, such as the S&P 500 and Vanguard Total Stock Market ETF for total market exposure.
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