Bank of America will match the US authorities’s $1,000 contributions to Trump accounts for eligible staff, according to an inside memo despatched to staffers Wednesday morning.
The bank will also let staff make pre-tax contributions to these financial savings accounts for youngsters through payroll deductions, a copy of the memo obtained by The Post confirmed.
As of July 4, a new program accredited as half of President Trump’s One Big Beautiful Bill Act will permit mother and father to open tax-advantaged investment accounts for youngsters under 18 with Social Security numbers.
Bank of America will match the US authorities’s $1,000 contribution to Trump accounts for eligible staff, according to an inside memo. Anne Czichos – stock.adobe.com
For kids 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 yr said it would award about $1 billion in equity to all staff, except senior management – coming to almost 19 million shares of Bank of America stock.
As for the Trump accounts, the authorities will invest the financial savings in low-cost index funds.
Trump accounts do not have the same tax benefits as 529 accounts or Roth IRAs, however.
Withdrawals from the accounts are not permitted until the baby turns 18. The property will then be rolled into an IRA, and withdrawals will be taxed.
Michael and Susan Dell pledged to donate $6.25 billion toward the Trump accounts. AP
But the GOP’s tax-and-spending invoice also makes it simpler for main firms and philanthropists to contribute to the investment accounts on a giant scale.
The invoice limits account contributions to $5,000 per yr, with the employer portion of contributions expected to be restricted to $2,500 yearly.
Rap star Nicki Minaj is set to contribute $150,000 to $300,000 to help her “Barbz” followers set up the accounts, becoming a member of 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 kids, which would come to $250 per account.
Dell Technologies also announced it will match the US Treasury’s $1,000 grants for new child kids of US staff.
