Here’s how Trump’s 401(k)-style retirement accounts could work

MarketWatch

by Jessica Hall

February 26, 2026

AI-Generated Deep Dive Summary

President Trump’s recent proposal to create 401(k)-style retirement accounts for individuals without job-based plans has sparked significant discussion in the financial community. During his State of the Union address, Trump unveiled this initiative, aiming to expand access to retirement savings tools for millions of Americans who currently lack such opportunities at their workplaces. While the idea addresses a critical gap in the nation’s retirement security framework, it also raises numerous questions about implementation and effectiveness. The proposal is particularly significant because it targets a population often overlooked by existing retirement systems. According to data, roughly 40% of American workers do not have access to employer-sponsored retirement plans, leaving them at risk of insufficient savings for their golden years. Trump’s plan seeks to empower these individuals by offering portable, low-cost accounts that mirror the structure of traditional 401(k)s but with features tailored to independent workers and freelancers. Key details of the proposal include auto-enrollment mechanisms to encourage participation and tax incentives to make saving more attractive. The accounts would be designed to follow employees if they switch jobs, ensuring greater flexibility in an increasingly gig economy. However, many aspects of the plan remain unclear, such as funding levels, contribution limits, and administrative oversight

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Originally published on MarketWatch on 2/26/2026