Jessica Anderson on CNBC: Why 50 Million Uncovered Workers Can Finally Claim an Edge

American Dream Accounts target about 50 million workers who lack employer-sponsored retirement plans. The accounts are positioned as a long-term investment vehicle similar to the Thrift Savings Plan. The federal match can be up to $1,000 annually on worker contributions invested in low-cost index funds. Independent workers such as gig drivers, freelancers, and one-person LLC owners often receive no employer match, unlike W-2 employees who may get automatic 3% to 6% matches. Funding the account is presented as essential because missing the match means losing potential savings over a career. An example projects that contributing $1,200 at a 3% rate could grow to about $1.6 million by age 65.

"This is targeted for the 50 million American workers that don't have access to an employer sponsored plan. So think of it like a TSP, a thrift savings plan. But now for all these workers, gig economy workers, small business owners, entrepreneurs, they now have access to this investment long term investment vehicle, something that they would never have access to before."

"If you drive for a rideshare app, freelance, or run a one-person LLC, you have watched W-2 employees get an automatic 3% to 6% employer match while you got nothing. President Trump signed an executive order last month creating American Dream Accounts, which offer a federal match of up to $1,000 annually on worker contributions invested in low-cost index funds. Miss the mechanics and you leave free money on the table for your entire career."

"When you look closely at the financial reality for independent workers, the stakes are incredibly concrete. If you drive for a rideshare app, freelance, or run a one-person LLC, you have watched W-2 employees get an automatic 3% to 6% employer match while you got nothing. President Trump signed an executive order last month creating TrumpIRA.gov, which offers a federal match of up to $1,000 annually on lower-income worker contributions invested in low-cost index funds. Missing these mechanics means you leave free money on the table for your entire career."

"If you're a 40,000 worker today, for instance, and you put in, let's say $1,200, 3%, by the time you're 65 at retirement age, you could have $1.6 million saved."

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