Bank of America will match the U.S. government’s $1,000 pilot contribution to Trump Accounts for all eligible U.S. employees .The bank also allows eligible employees to make pre-tax contributions to these accounts through payroll deductions.
Trump Accounts Overview
Trump Accounts are a new type of individual retirement account created under President Trump’s One Big Beautiful Bill Act. The program is scheduled to launch on July 4, 2026. with the U.S. Treasury depositing $1,000 of seed money into investment accounts for all children born between January 1, 2025 and December 31, 2028 who have a valid Social Security number.
Contribution Details
The accounts operate with specific contribution limits :
- Annual contributions are capped at $5,000 per year
- Employer contributions are limited to $2,500 per year (counting toward the annual limit)
- Employer contributions are not taxable income to employees
The government invests the money in low-cost index funds that grow tax-free, with income taxes due only upon withdrawal.
Withdrawal and Investment Rules
Funds generally cannot be withdrawn before January 1st of the calendar year in which the child turns 18 years old. After that point, the account is treated as a traditional IRA and follows standard IRA rules. Account holders may withdraw funds for educational expenses, home ownership, entrepreneurship, and other designated purposes.
Investments must be in mutual funds or exchange-traded funds tracking the S&P 500 or another index of primarily American equities.
