Millions of Trump accounts, the new savings accounts for children, will be funded with an initial deposit of $1,000 from the U.S. 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 establish the IRA-like savings account, only those born between Jan. 1, 2025, and Dec. 31, 2028, get a $1,000 deposit directly from the government as one-time seed money.
Parents and their employers, family members, friends — really anyone — can contribute up to $2,500 per year, beginning on July 5, with a $5,000 annual cap on contributions.
Charitable organizations and state governments can also make contributions, which do not count against the annual limit. So far, Treasury Secretary Scott Bessent says 20 U.S. 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 donations. Below is an updated list. Each company’s matching contribution may vary.
Read more: Trump accounts explained: How they work, who qualifies
Block, Inc.
Broadcom
Coinbase
Dell Technologies
IBM
Intel
Nvidia
Charter Communications
Chipotle Mexican Grill
Comcast
Continental Resources
Steak ‘n Shake
Turning Point USA
Uber
Nonprofits and philanthropists
Michael and Susan Dell are providing eligible children aged 10 and under who live in ZIP codes with a median income of $150,000 or less a contribution of $250. 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 donate $250 to each Indiana child under five with a Trump account.
Rap artist and songwriter Nicki Minaj has pledged $150,000 to $300,000 to the Trump accounts of her fans’ children.
Citi is one of the most recent additions to the list of contributing companies above, announcing its matching program on Feb. 5.
“Matched savings programs have a long track record 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 assisting with account openings will be key to the initiative’s success. The Citi Foundation has pledged $5 million to boost program awareness, encourage participation, and provide enrollment support.
Lindsey Stanberry, family financial advisor for Babylist.com, an online resource for growing families, agrees that Trump accounts may serve as an opportunity to “shift the conversation” in helping families save for their children’s futures as early as possible.
She notes 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 hopes to see “a growing wave of corporate participation,” and that employers will support both full-time and hourly 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 home, or they could hold on to it to use in retirement,” Stanberry noted.
529 accounts have much higher contribution limits, and investment earnings aren’t taxed when used to pay for qualified education expenses. Meanwhile, taxes are paid on the investment earnings in Trump accounts when you withdraw the money, just as with traditional IRAs.
“I think of these like tools in a toolbox, and you don’t have to choose just one,” Stanberry added. “Families can open a Trump account to take advantage of the $1,000 seed money and any employer match while also contributing to a 529 to maximize their child’s educational funding.”
Babylist.com has a page comparing Trump accounts and 529s that can help you navigate the differences.
Read more: Trump accounts vs. IRAs and 529s: How do they stack up?
-1024x683.jpg "Strait Outta Hormuz: Getting the Iran Oil Story Straight")
