Bank of America will match the US government’s $1,000 contributions to Trump accounts for eligible employees, according to an internal memo sent to staffers Wednesday morning.
The bank will also let employees make pre-tax contributions to these savings accounts for kids through payroll deductions, a copy of the memo obtained by The Post showed.
As of July 4, a new program approved as part of President Trump’s One Big Beautiful Bill Act will allow parents to open tax-advantaged investment accounts for kids under 18 with Social Security numbers.
For children born from 2025 through 2028, the US Treasury will seed these accounts with $1,000.
“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 said in a copy of the memo.
The company earlier this year said it would award about $1 billion in equity to all employees, except senior management – coming to nearly 19 million shares of Bank of America stock.
As for the Trump accounts, the government will invest the savings in low-cost index funds.
Trump accounts do not have the same tax advantages as 529 accounts or Roth IRAs, however.
Withdrawals from the accounts are not permitted until the child turns 18. The assets will then be rolled into an IRA, and withdrawals will be taxed.
But the GOP’s tax-and-spending bill also makes it easier for major corporations and philanthropists to contribute to the investment accounts on a large scale.
The bill limits account contributions to $5,000 per year, with the employer portion of contributions expected to be restricted to $2,500 annually.
Rap star Nicki Minaj is set to contribute $150,000 to $300,000 to help her “Barbz” fans set up the accounts, joining President Trump at a summit touting the program on Wednesday, The Post reported.
In December, Michael and Susan Dell pledged to donate a historic $6.25 billion toward Trump accounts for 25 million American children, which would come to $250 per account.
Dell Technologies also announced it will match the US Treasury’s $1,000 grants for newborn children of US employees.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
