Bank of America to match $1,000 government deposits for Trump accounts

Bank of America announced Wednesday that it will be contributing funds to the proposed "Trump accounts" for eligible employees.The bank said it will match the government’s $1,000 contribution to the newly established accounts for children born between Jan. 1, 2025, and Dec. 31, 2028 for all 165,000 U.S. employees.Additionally, the bank will enable its employees with children under age 18 to make pretax contributions to Trump accounts through payroll deductions.BESSENT SAYS TRUMP TAX CUTS COULD MEAN ‘SUBSTANTIAL REFUNDS’ FOR WORKING AMERICANS IN 2026"Our announcement to support and complement this new federal program for our teammates is one of the many ways we continue investing in our teammates and reinforce our commitment to being a Great Place to Work," Bank of America said in a statement. "When teammates have the opportunity to build long‑term financial security for themselves and their families, it strengthens our company and the communities we serve."The so-called Trump accounts were created under the One Big Beautiful Bill Act last year as an initiative to provide newborns with a government-backed savings program.The accounts — which will officially launch on July 4, 2026 — will be provided to every American child born between Jan. 1, 2025, and Dec. 31, 2028, and will be funded with $1,000 from the U.S. Treasury.An authorized adult, including a parent, guardian, adult sibling or grandparent, can establish the account for their child if they have a valid Social Security number. Though it is not required to make contributions, up to $5,000 can be deposited in the accounts per year.DAVID BECKHAM EXPLAINS WHY HIS BANK OF AMERICA SPORTS DEAL ISN'T YOUR TRADITIONAL SPONSORSHIPParents can enroll their children by opting in when they file their tax returns."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.President Donald Trump is expected to share more details about the accounts on Wednesday alongside Treasury Secretary Scott Bessent.The funds in the account will be invested in broad U.S. stock index funds — the same kinds of low-cost funds used in many retirement accounts — and will grow in value alongside the overall performance of the U.S. stock market.GET FOX BUSINESS ON THE GO BY CLICKING HEREAccording to the Treasury Department’s Office of Tax Analysis, a fully funded Trump account could be worth as much as $1.9 million by age 28, with lower-end returns approaching $600,000 over the same period.Treasury estimates the savings account would rise to between $3,000 and $13,800 over 18 years without contributions beyond the federal government’s initial $1,000 deposit.FOX Business' Amanda Macias contributed to this report.Weiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business