JPMorgan Chase and Bank of America to match $1,000 U.S. contributions to employee ‘Trump accounts’

JPMorgan Chase, Bank of America and Wells Fargo mentioned Wednesday in separate releases that the corporations will match the U.S. authorities’s one-time $1,000 contribution to youngsters’s retirement financial savings accounts for eligible workers, the most recent firms to announce such a measure.

The so-called Trump accounts are half of a pilot program that deposits $1,000 from the U.S. Treasury into tax-advantaged accounts for eligible youngsters born within the U.S. between Jan. 1, 2025, and Dec. 31, 2028.

This system, partly the brainchild of hedge fund supervisor Brad Gerstner, goals to assist slim the U.S. wealth hole by encouraging long-term saving and investing from start. It has attracted commitments from a rising record of rich people, from billionaires resembling Michael and Susan Dell and Ray Dalio to rap artist Nicki Minaj.

“JPMorgan Chase has demonstrated a long-term dedication to the monetary well being and well-being of all of our workers and their households world wide, together with greater than 190,000 right here in the US,” CEO Jamie Dimon mentioned in a launch. “By matching this contribution, we’re making it simpler for them to begin saving early, make investments correctly, and plan for his or her household’s monetary future.”

In a memo despatched to workers Wednesday first reported by Reuters, Bank of America mentioned it applauded the federal government’s “revolutionary options” for employee financial savings. Wells Fargo despatched its personal inner memo later that very same day, a duplicate of which was shared with CNBC.

Monetary corporations dominate the record of firms which can be matching contributions for the brand new accounts. Apart from JPMorgan and Bank of America, the 2 largest U.S. banks by property, BlackRock, BNY, Robinhood, SoFi and Charles Schwab have made related bulletins.