President Trump today signed an executive order called “Strengthening Retirement Security in America” that is designed to expand access to workplace retirement savings plans for American workers.
NAHB CEO Jerry Howard attended the signing ceremony, which took place in Charlotte, N.C., and issued the following statement in support of the White House initiative:
“NAHB commends President Trump for making retirement security an important national priority. This need is particularly acute in the residential construction sector, where most home building firms are small businesses with less than 10 employees. Therefore, I am particularly pleased to attend this event in Charlotte representing the nation’s home builders.
“By continuing to follow through on his pledge to reduce burdensome regulations, the president is taking an important step forward for American workers. The executive order removes needless regulatory barriers that will help more trade groups and small businesses to provide workplace retirement plans for their employees.”
Specifically, the executive order is aimed at allowing two or more employers who are not related (e.g., car dealerships and restaurants) to establish 401(k) plans as one entity. By pooling resources, unrelated businesses could cut costs, which could lead to more companies offering retirement savings plans.
Multiple employer plans would be particularly helpful to small businesses who otherwise may not be able to offer retirement benefits by allowing them to participate in a single, professionally administered plan that affords them economies of scale.