Major Banks Join "Trump Accounts" Initiative
JPMorgan Chase and Bank of America to Match $1,000 Government Contributions for Employee Children's Savings
JPMorgan Chase and Bank of America announced Wednesday they will match the U.S. government's one-time $1,000 contribution to children's retirement savings accounts for eligible employees. These announcements were made in separate statements.
The "Trump accounts" initiative is a pilot program that deposits $1,000 from the U.S. Treasury into a tax-advantaged account for eligible children born in the U.S. between January 1, 2025, and December 31, 2028.
The program, conceived partly by hedge fund manager Brad Gerstner, aims to narrow the U.S. wealth gap by promoting early long-term saving and investing.
It has garnered support and commitments from various individuals, including billionaires Michael and Susan Dell, Ray Dalio, and artist Nicki Minaj.
Jamie Dimon, CEO of JPMorgan Chase, stated in a release that the company is committed to the financial health of its employees and their families. He added that:
"By matching this contribution, JPMorgan is facilitating early saving, wise investing, and financial planning for families."
Bank of America, in an employee memo first reported by Reuters, expressed appreciation for the government's "innovative solutions" concerning employee savings.
Several financial firms have made similar commitments to match contributions for these new accounts. In addition to JPMorgan and Bank of America, other participating companies include BlackRock, BNY, Robinhood, SoFi, and Charles Schwab.