JPMorgan Chase and Bank of America to Match $1,000 U.S. Contribution
JPMorgan Chase and Bank of America announced on Wednesday that they will each match a one-time $1,000 federal deposit into children’s retirement-style savings accounts for qualifying employees, making them the latest large corporations to sign on to the initiative.
The accounts, widely referred to as Trump accounts, are part of a pilot program in which the U.S. Treasury places $1,000 into tax-advantaged investment accounts for eligible children born in the United States between January 1, 2025, and December 31, 2028.
The initiative, which was developed in part by hedge fund manager Brad Gerstner, is designed to promote early saving and investing as a way to reduce long-term wealth disparities in the United States. The program has drawn support from a range of high-profile backers, including Michael and Susan Dell, Ray Dalio, and rapper Nicki Minaj.
“JPMorgan Chase has demonstrated a long-term commitment to the financial health and well-being of all of our employees and their families around the world, including more than 190,000 here in the United States,” CEO Jamie Dimon said in a release. “By matching this contribution, we’re making it easier for them to start saving early, invest wisely, and plan for their family’s financial future.”
Bank of America conveyed its position in an internal memo circulated to employees on Wednesday and first reported by Reuters, praising what it described as the government’s “innovative solutions” aimed at strengthening employee savings.
Financial institutions now make up the bulk of companies pledging to match the government’s contribution. In addition to JPMorgan Chase and Bank of America, other major players including BlackRock, BNY, Robinhood, SoFi, and Charles Schwab have also committed to providing matching funds for the new accounts.
{Matzav.com}