Topline
JPMorgan will match the government’s initial $1,000 deposit in Trump accounts for newborn children for eligible employees in the U.S., the bank said Wednesday—as Bank of America also told employees it would offer to match deposits, according to a memo.
The banks follow similar pledges from other companies including BlackRock and BNY.
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Key Facts
In a statement, JPMorgan chairman and CEO Jamie Dimon said the contributions would be part of their “long-term commitment” to their 190,000 employees in the U.S., and would make it “easier for them to start saving early, invest wisely, and plan for their family’s financial future.”
In a memo from the bank to its employees viewed by Forbes, Bank of America praised the accounts as “innovative solutions for employees and families to plan for their future” and confirmed they would match the government’s initial $1,000 investment.
Bank of America will also allow its employees with children under the age of 18 to make pre-tax contributions to the accounts through payroll deductions, according to the memo.
What Are Trump Accounts?
The government unveiled “Trump accounts” last year, intended to serve as savings accounts for children born between Jan. 1, 2025 and December 31, 2028. With an initial $1,000 provided by the federal government, these accounts are invested in the stock market and parents can contribute up to $5,000 more per year. The Trump administration is hoping billionaires and other major donors will contribute to these accounts, providing higher initial investments for children in their states. In December, billionaire Michael Dell and his wife Susan Dell announced they would contribute $6.25 billion to the accounts, boosting the initial investment for approximately 25 million children across the country. Ray Dalio announced he would contribute about $250 per child for about 300,000 low income children in Connecticut.