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President Trump proposes TSP-style retirement plan for workers without 401(k)s

President Donald Trump has announced plans to create a new tax-advantaged retirement savings option for private-sector workers who lack access to employer-sponsored 401(k) plans. In his State of the Union address on Tuesday, Mr. Trump said the proposed plan would be modeled after the federal government’s low-fee Thrift Savings Plan (TSP) and would include a government matching contribution of up to $1,000 per year. The move aims to address what he described as a disparity between workers who have workplace retirement plans and the roughly 56m private-sector employees who do not. The proposal builds on the “Savers Match” program included in the 2022 Secure 2.0 legislation passed under President Joe Biden, though Trump plans to modify it to ensure portability and potentially allow philanthropic contributions. Additional details are expected from the administration. Mr. Trump also criticized the Supreme Court justices who struck down most of his tariffs as "very unfortunate" and "disappointing," a rare instance of high court criticism during a State of the Union address.

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