3 Tools to Build Retirement Savings Before the TrumpIRA Starts

President Donald Trump on Thursday signed an executive order giving access to retirement accounts to workers whose employers don’t currently offer them. But you don’t need to wait for Trump’s new marketplace to start saving for retirement — there are tools you can use right now. 

Trump’s executive order directs the Treasury Department to launch TrumpIRA.gov, a marketplace where Americans can select their own retirement plans. Single taxpayers with modified adjusted gross incomes of $20,500 are eligible for an annual 50% contribution match up to $1,000 (or $2,000 for joint filers, earning $41,000 before taxes). Single taxpayers earning $20,500 to $35,500 (and joint filers making up to $71,000) can receive a smaller match.

As Trump previously outlined in his latest State of the Union address, it will be integrated with the Savers’ Match, which was created through the Secure 2.0 legislation passed in 2022 during the Biden administration, and begins next year. The White House did not immediately respond to CNBC Select’s request for comment about the program.

There are thousands of IRA options you can start using today, regardless of whether or not your employer offers a plan — and all of these offerings are eligible for the Savers’ Match. 

We get into our favorite IRAs below, plus other tools — like annuities and mortgage refinancing — that can help you secure more cash in retirement. 

If you don’t have a 401(k) plan through your job, opening an IRA should be on your retirement planning to-do list. These are investment accounts that aren’t tied to your employment, so they’re available to large swaths of the population.  

There are two types of IRA accounts — Roth and traditional — and each has different rules and tax benefits.  

Many popular banks and investing platforms have both types of IRAs. CNBC Select likes Vanguard since the brand offers both options, doesn’t have commission fees for stocks and exchange-traded fund trades and has no brokerage fees when you sign up for e-statements.  

We also like Betterment’s traditional and Roth IRAs since the platform is mobile-friendly and easy to use.  

With either type of account, you’re able to contribute up to the limit, which is $7,500 in 2026 for those under age 50 and $8,600 for those who are 50 or older, or up to your total taxable compensation for the year if it’s less than this amount.  

Additionally, these accounts have rules on when withdrawals can be made: You can start making penalty-free withdrawals at age 59 and a half. Prior to that age, you’ll pay a 10% penalty, and the proceeds will be taxed at your standard income rate if you need to withdraw.  

If you’re close to retirement and are worried about outliving your savings, an annuity could be the right fit.

CNBC Select likes Athene Annuities for its wide variety. It’s also earned excellent marks for financial strength from ratings agency A.M. Best, indicating the company is likely to remain financially strong for years to come — after all, company default is one of the risks that annuity buyers should weigh before buying.

The annuities also have a wide variety of optional riders that can help you meet certain goals, like providing increased liquidity or an enhanced death benefit paid to your heirs. 

We also like New York Life for its low, accessible minimum deposit amount of $5,000 for some types of accounts, which is lower than the $10,000 minimum many other providers require.

There are ways you can manage your money now to put you in the best place possible in your Golden Years. 

One way is by paying down your mortgage as soon as possible. Think of your mortgage as a type of savings account; instead of stock market investments, you’re investing in the future equity in your home. Home equity is the portion of your home you own outright. 

If you have more equity in your home, you could get more cash if you sell and you would be able to take out a reverse mortgage if you decide to apply for one in retirement. 

A reverse mortgage is a type of home equity loan product typically geared toward individuals 62 or older. Unlike traditional home equity debt products, you won’t have to make monthly payments. You won’t have to pay a cent until you move out of the house, die, stop living in the house full-time or stop making your home insurance payments or property taxes. Your loan, plus any interest, will come due within 30 days of any of those events happening. 

You typically need at least 50% equity in your home to be eligible for this type of loan. So you’ll need to start gaining equity now to be eligible for this product later. Here are two of our top picks for reverse mortgage providers.

If you want to increase your home equity, there are two strategies: pay down your mortgage or increase your home’s value. The latter has less to do with you and more with the market, so we’ll focus on what you can control.

One way to pay down your principal faster is to refinance at a lower rate and plow the money you’re saving as a result each month into your payment. If your credit score has improved, if the rate market has gotten better or if your current mortgage is with a lender that offers higher-than-average rates, chances are you can lower your rate, and thus your monthly minimum payment. 

For example, CNBC Select previously calculated that someone who puts 10% down on a $400,500 house (the median-priced home as of January) and takes out the remaining cost of $360,450 as a mortgage could save over $100 per month by refinancing by half a point from a 7.0% to 6.5% rate. You can use the difference in your monthly payment to pay down your principal amount, which can help you accrue equity faster. 

We like Better Mortgage largely because it’s known for its lower-than-average rates. Plus, you can roll your closing costs into the loan itself, so you don’t need cash up front to get the lower rate — but adding to your principal increases your loan overall.

Select also likes FourLeaf Credit Union for its low rates. Unlike most credit unions with limited membership requirements, anyone can join the credit union by depositing just $5 into a FourLeaf savings account. 

Correction: A previous version of this article misstated the eligible income figures outlined under the Saver’s Match. Single taxpayers with a modified adjusted gross income of up to $20,500 or joint filers making up to $41,000 qualify for a government match worth 50% of up to a $2,000 contribution to a qualified retirement account, for a maximum match of $1,000 a year. Single filers with annual incomes of between $20,500 and $35,500 qualify for reduced matching contributions, and joint filers making up to $71,000 can qualify for a reduced match.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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