WASHINGTON — The White House and Treasury on Wednesday rolled out “Trump Accounts,” a new federal savings initiative for children, and secured fresh commitments from major employers and financial firms to match or supplement the government’s one-time $1,000 seed deposit for eligible newborns.
The accounts are designed as a tax-preferred savings vehicle for U.S.-citizen children under 18, with a separate pilot contribution for children born from Jan. 1, 2025, through Dec. 31, 2028. Contributions generally cannot be made before July 4, 2026, and parents or guardians must make the election using Form 4547, IRS said.
Under the framework, total private contributions are capped at $5,000 per child per year. Employer contributions are permitted up to $2,500 a year and may be excluded from employees’ taxable income if made under program rules. The IRS said funds must be invested in qualifying low-cost index funds or ETFs tracking broad U.S. equity indexes, and withdrawals are generally restricted until the year the child turns 18. IRS also describes Form 4547 as the election vehicle for opening an initial account and requesting the pilot deposit.
At the summit, JPMorgan Chase said it will match the federal $1,000 pilot deposit for eligible children of U.S. employees, and CEO Jamie Dimon framed the move as support for long-term family financial planning.
Intel also committed to matching the federal contribution for eligible children of U.S. employees, while Charles Schwab said it will match the $1,000 government contribution for employees’ children.
Visa said it plans to support the program by offering 530A Trump Accounts in its benefits package and pointed to work with partners to expand ways families add savings, including rewards-based contributions, VisaNews said.
The White House has also promoted a $6.25 billion pledge by Michael and Susan Dell to add $250 to accounts for up to 25 million children.
Bank of America said it will match the federal deposit and allow pre-tax payroll contributions for eligible employees, according to a report citing the bank’s statement, as reported by Fox Business.
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