Bank of America and JPMorgan Chase said on Jan. 28 that they would match the U.S. government’s one‑time $1,000 contribution to children’s retirement accounts – also known as Trump Accounts – for eligible employees.
The current administration’s pilot program sets aside a $1,000 Treasury-funded deposit in a tax‑advantaged account for eligible children born in the United States between Jan. 1, 2025, and Dec. 31, 2028.
JPMorgan Chase CEO Jamie Dimon, in a statement, said the company is focused on the financial health of its employees and their families, “including more than 190,000 here in the United States.
“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,” Dimon said.
In recent months, the bank has rewarded staff in other ways.
The Wall Street titan awarded a $1,000 special grant to eligible employees worldwide who earn less than $80,000 in annual cash compensation, depositing the funds into U.S. workers’ 401(k) plans.
Beyond financial‑wellness benefits, JPMorgan Chase provides all new parents with 16 weeks of paid leave, regardless of caregiver status.
Bank of America will also match the $1,000 seed money, according to an internal memo viewed by The Epoch Times.
“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,” Bank of America stated.
Two of the largest U.S. banks join a number of other financial institutions that have made pledges regarding the new accounts.
BlackRock, BNY, Charles Schwab, Robinhood, and SoFi have announced matching contributions for the accounts.
Non-financial companies, including Steak ‘n Shake, have also started supporting Trump Accounts.
“By funding tax-advantaged investment accounts for our employees’ children, we are ensuring that the next generation of Americans participate from birth in our free-market, wealth-building economy,” the fast food company stated in a Jan. 28 X post.
“Steak n Shake has benefited from our country’s prosperity, and we are committed to giving back to our communities and our country.”
Wealthy individuals have also made major commitments, most notably Michael and Susan Dell, hedge fund manager Ray Dalio, and rapper Nicki Minaj.
An authorized adult – parent, guardian, adult sibling, or grandparent – can open an account for a child if the adult has a valid Social Security number.
Although contributions are not mandatory, families may deposit up to $5,000 into each account each year.
The accounts’ funds will be invested in broad U.S. stock index funds and will track the overall performance of the stock market.
An analysis by the Treasury Department estimated that a single deposit could be lucrative by the time the recipient turns 60.
Officials project that the $1,000 seed money at birth can increase to almost $500,000 “with average returns” and more than $1 million “in strong markets.”
Financial markets have rocketed this year: The S&P 500 hit 7,000 for the first time on Jan. 28, rising by 2 percent to kick off the year. The blue-chip Dow Jones Industrial Average has also climbed by 2 percent this month, to 49,000. And the tech-heavy Nasdaq Composite Index is up almost 3 percent year to date, to nearly 24,000.
