These are all the companies pledging match funds to Trump’s accounts

Millions of Trump accounts, the new savings accounts for children, will be funded with an initial deposit of $1,000 from the US Treasury. So far, nearly three dozen companies and philanthropists have pledged to match that seed money with their own donations.

Experts say savings accounts, along with employer contributions, could help reframe the conversation about saving early for children’s futures.

While any child under 18 with a Social Security number can set up an IRA-like savings account, only those born between January 1, 2025 and December 31, 2028 receive a $1,000 deposit directly from the government as a one-time down payment.

Parents and their employers, family and friends—really anyone—can contribute up to $2,500 a year, starting July 5, with an annual limit of $5,000 on contributions.

Charities and state governments can also make contributions, which do not count against the annual limit. So far, Treasury Secretary Scott Bessent says 20 US states are working to meet the administration’s “50-State Challenge” to help fund the accounts.

Nearly three dozen companies and philanthropists have pledged to match the donations. Below is an updated list. Each company’s matching contribution may vary.

Block, Inc.
Broadcom
Coinbase
Dell Technologies
IBM
Intel
Nvidia

Communications of the Charter
Chipotle Mexican Grill
Comcast
Continental resources
Steak ‘n Shake
Turning point USA
Uber

Non-profit organizations and philanthropists

Michael and Susan Dell offer eligible children 10 years of age and younger who live in zip codes with a median income of $150,000 or less a $250 contribution. The commitment is estimated at $6.25 billion.
Hedge fund founder Ray Dalio and his wife, Barbara, pledged $250 each to about 300,000 children living in Connecticut ZIP codes in households with median incomes below $150,000.
Altimeter Capital CEO Brad Gerstner said he would give $250 to every Indiana child under five with a Trump account.
Rap artist and songwriter Nicki Minaj has donated between $150,000 and $300,000 to the Trump accounts of her fans’ children.

Citi is one of the most recent additions to the list of partner companies above, and announced its matching program on February 5.

“Matched savings programs have a long history of helping families take that first step toward building assets, and we’re excited about the possibilities that Trump accounts can open up for Americans,” Brandee McHale, president of the Citi Foundation, told Yahoo Finance.

McHale added that helping households understand Trump accounts and helping with account openings will be key to the initiative’s success. The Citi Foundation has committed $5 million to increase awareness of the program, encourage participation and support enrollment.

Lindsey Stanberry, a family financial advisor at Babylist.com, an online resource for growing families, agrees that the Trump accounts can serve as an opportunity to “change the conversation” to help families save for their children’s futures as soon as possible.

Note that the employer matching feature works much like a 401(k) plan.

“Adding the cash incentive could encourage more families to prioritize investing in these accounts,” Stanberry said. “While the goal of these accounts is to help build wealth for all American children, ultimately it will be easier for families who have access to employer matching programs.”

She expects to see “a rising tide of corporate participation” and that employers will support both full-time and part-time employees.

IRAs, 529 plans and education savings accounts are already options for families to consider, in addition to the new Trump accounts.

“Trump accounts and 529 accounts are similar in that the money in them can be used to pay for college, but with a Trump account, your child could also use the money to buy a house or save for retirement,” Stanberry noted.

529 accounts have much higher contribution limits and investment income is not taxed when used to pay qualified education expenses. Meanwhile, taxes are paid on investment gains in Trump accounts when you withdraw the money, just like with traditional IRAs.

“I think of these as tools in a toolbox, and you don’t have to pick just one,” Stanberry added. “Families can open a Trump account to take advantage of $1,000 upfront money and any employer match while contributing to a 529 to maximize their child’s education funding.”

Babylist.com has one page comparing Trump and 529 accounts that can help you navigate the differences.

Source link