Big banks jump in on 'Trump Accounts' with $1,000 matches for employees’ kids
The One Big Beautiful Bill introduced the Trump Accounts, a new kind of individual savings account for children under 18 who have a current Social Security number. This program comes under the Working Families Tax Cuts. U.S. citizens born between January 1, 2025, and December 31, 2028, will receive a $1,000 donation under an experimental scheme, as per the IRS. A growing number of financial institutions offer these savings accounts to their employees. Recently, Bank of America and JPMorgan announced that they would match the $1,000 government deposits for Trump accounts of the children of their employees.
"Our announcement to support and complement this new federal program for our teammates is one of the many ways we continue investing in our teammates and reinforce our commitment to being a Great Place to Work," BoAF said in a statement. "When teammates have the opportunity to build long‑term financial security for themselves and their families, it strengthens our company and the communities we serve. We applaud that the federal government is providing innovative solutions for employees and families to plan for their future, and we welcome the opportunity to participate," it added.
Fox Business reported that 165,000 employees are set to profit from the initiative. Payroll deductions allow employees who have children under the age of eighteen to make pretax contributions. Low-cost U.S. stock index funds will be used to invest the money in these accounts. A completely funded account might be worth $1.9 million by the age of 28, according to the Treasury Department, while individuals who don't make any more payments would end up with between $3,000 and $13,800 over the course of 18 years.
More than 190,000 employees of JPMorgan are set to benefit from the program, CEO Jamie Dimon stated during a press release. "By matching this contribution, we're making it easier for them to start saving early, invest wisely, and plan for their family's financial future," he said. Following promises from companies like BlackRock and Charles Schwab, several banks have promised to match their employees' $1,000 contributions to Trump Accounts for their children, Business Insider reported.
David Solomon, the CEO of Goldman Sachs, expressed his support during a White House roundtable in June. Launching on July 4, 2026, the Treasury-funded accounts will be available to all citizens of the United States born between January 1, 2025, and December 31, 2028. Parents can contribute up to $5,000 each year. Although many similar programs have not yet been put into action, this one is a part of Trump's plans to give Americans financial assistance during his second term.
Michael and Susan Dell contributed $250 to the accounts of 25 million American children aged 10 and under who were born before January 1, 2025, and who reside in areas with a median income of $150,000 or less, when they promised $6.25 billion to the Trump Accounts project in December. Ray Dalio, Chief Investment Officer of Bridgewaters also intends to provide $250 to about 300,000 Connecticut kids from comparable socioeconomic backgrounds.
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