A growing list of businesses are moving to contribute to a federal retirement savings account intended for children.
Wednesday’s Trump Accounts Summit in Washington, D.C. saw a number of business leaders and organizations show support for the savings program, which would allow the U.S. Treasury Department to make a one-time $1,000 contribution for children born in the U.S. between Jan 1., 2025, to December 31, 2028.
During the summit, the Treasury Department revealed that several firms, associations, and individual philanthropists have pledged contributions to the account program. Treasury Secretary Scott Bessent named companies like Charles Schwab, Dell Technologies, Russell Investments, SoFi, Bank of New York Mellon, and State Street, as those who have guaranteed to match contributions for eligible employees.
Other businesses who have stated their intentions to donate to the program include BlackRock, BNY, Chime Financial, Comcast, Coinbase, IBM, the Investment Company Institute, JPMorganChase, Mastercard, Robinhood Markets, Russell Investments, Visa, and Wells Fargo, among others.
“Donations from employers are essential to bringing the President’s vision to life. Already, we have seen a large number of US businesses across a wide range of industries step up to support Trump Accounts,” said Bessent in his remarks.
Other philanthropists, like Bridgewater Associates founder and billionaire Ray Dalio, have promised contributions to the children of eligible state residents. Dalio Philanthropies in December said it would donate an additional $250 per child for approximately 300,000 children in the state of Connecticut, who were under age 10 and lived in a zip code where the median household income is less than $150,000.
Trump Accounts follow a similar framework of 529 programs, another government-sponsored savings account aimed for children. While 529s allow accountholders to withdraw funds for qualified education costs, Trump Accounts intend to serve as a retirement savings vehicle that would jumpstart long-term savings for children. According to the Council of Economic Advisers (CEA), by age 28, children who receive maximum annual contributions could have over $1 million in their accounts.
Without contributions, the CEA projects possible account balances of $18,100 at age 28.
The accounts will track a stock index and allow for additional private contributions of up to $5,000 per year, although outside contributions to the program are unable to be made until July 4. Employers will be able to contribute up to $2,500 annually to each eligible employee’s child.
During the summit, Bessent claimed the accounts had already seen a surge of interest following the start of tax season on Monday. He was reported as telling CNBC that “600,000 families out of an estimated 25 million” have since signed up for the program.