Bank of America, JPMorgan to match Treasury’s $1,000 deposits in Trump accounts for employees

By: Taylor H.

Bank of America and JPMorgan Chase said they would match the US government’s $1,000 contributions to Trump accounts established by eligible employees.

BofA will also let employees make pre-tax contributions to the savings accounts for kids through payroll deductions, according to a memo the bank sent employees that was obtained.

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. Those are the funds BofA and JPMorgan promised to match.

“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 told employees.

JPMorgan “has demonstrated a long-term commitment to the financial health and well-being of all of our employees and their families around the world, including more than 190,000 here in the United States,” CEO Jamie Dimon said in a statement.

Trump accounts have been drawing growing support from big employers, with BlackRock and Chime Financial among those pledging to match the government’s seed funds, according to Bloomberg.

The government will invest savings from Trump accounts in low-cost index funds.

However, they do not have the same tax advantages as 529 accounts or Roth IRAs.

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 makes it easier for major corporations and philanthropists to contribute to the investment accounts on a large scale.

The legislation 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.

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.

Earlier this year, Bank of America 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.