Trump Account for babies: JPMorgan, Bank of America to match $1,000 contributions for eligible employees — what we know
JPMorgan Chase & Co and Bank of America Corp said in separate statements on Wednesday that the companies would match the U.S. government’s $1,000 “Trump Account” contribution to eligible employees whose children were born between the beginning of last year and the end of 2028.
According to a report by CNBC, the two firms join many others in announcing such a measure; Companies including Visa Inc, Chime Financial Inc and BlackRock Inc are also promising to match the government’s Trump Account contributions.
Bank of America also said it would allow eligible employees with children under 18 to deposit funds directly from their paychecks into Trump Accounts before taxes are deducted, according to a separate report from Bloomberg.
Meanwhile, JPMorgan announced that the investment banking firm is offering a special $1,000 reward to eligible employees worldwide this year. The amount deposited into 401(k) accounts was specifically rewarded to workers who earned less than $80,000 in total annual cash compensation.
What is Trump Account?
US President Donald Trump introduced the accounts as part of his Big Beautiful Bill Act, under which the government would offer a one-time $1,000 payment to children born between the beginning of 2025 and the end of 2028.
This money will be placed specifically in individual retirement accounts, where it will be invested in U.S. stock index funds and locked away until the child turns 18.
It is expected to be implemented on July 4 this year and will be deposited into children’s investment accounts with valid Social Security numbers. Supporters of the program argue that starting investments at birth could increase economic mobility and give future workers a stronger chance to climb the economic ladder. Reuters in question.
The program was partly the brainchild of hedge fund manager Brad Gerstner and aims to narrow the U.S. wealth gap by encouraging long-term savings and investment from birth.
The initiative reflects broad support in the business and entertainment communities, drawing commitments from a growing list of wealthy individuals and public figures, from billionaires such as Michael and Susan Dell and Ray Dalio to celebrities such as rap artist Nicki Minaj. CNBC reported.
