The employers and credit card boosting Trump account contributions
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Musician Nicki Minaj joins President Trump on stage as he delivers remarks during the Treasury Department's Trump Accounts Summit. Photo by Win McNamee/Getty Images
President Trump on Wednesday attempted to rally interest in Trump accounts with a flurry of announcements related to employer contribution matches and multiple celebrity endorsements.
Why it matters: Trump has made the "401(k)s from birth" accounts a centerpiece of his push to assuage Americans' affordability concerns ahead of midterms.
Driving the news: Trump headlined a summit encouraging parents to sign up for the investment vehicle for kids.
- The event featured a number of politicians and celebrities, including Sen. Ted Cruz, musician Nicki Minaj, and "Shark Tank" judge Kevin O'Leary.
- Minaj will contribute between $150,000 and $300,000 to fund her fans' Trump accounts, CNBC reported, adding to multibillion and multimillion dollar donations from Michael Dell and Ray Dalio, respectively.
The intrigue: Visa CEO Ryan McInerney announced at the summit that the credit card issuer will work with its bank partners to use credit card rewards to help fund Trump accounts.
What they're saying: "Visa is creating a brand new platform, which will allow credit card holders to deposit their cash back rewards directly into Trump accounts," Trump said. "That's a big deal."
What to know about the accounts
State of play: Parents or guardians of children who are U.S. citizens born between 2025 and 2028 can elect to receive $1,000 from the U.S. Treasury as seed money for the tax-advantaged savings and investment accounts.
- The accounts have annual $5,000 limits, which the Treasury's one-time contribution does not count against.
- The benefit is available for children as long as the account is opened "before the year in which the child turns age 18," according to the Treasury.
- Accounts may begin accepting contributions on July 4, 2026 after parents and guardians fill out the corresponding form.
More than 500,000 families have signed up for the Trump administration's investment accounts in recent days, Treasury Secretary Scott Bessent said prior to the summit, per Reuters.
Employer contribution rules
State of play: Pre-tax salary-reduction contributions will be allotted to Trump Accounts owned by an employee's dependent child via an employer-sponsored "cafeteria" plan.
- "We expect hundreds of major companies to announce plans to contribute to these accounts in the coming months," Trump said in December.
Companies pledging $1,000 match
Zoom in: JPMorganChase, Bank of America, Bank of New York Mellon, BlackRock, Intel, Charles Schwab, Steak n' Shake, Robinhood, SoFi, Coinbase, Russell Investments Group, and the Investment Company Institute have all pledged to match the Treasury's $1,000 seed money.
Zoom out: Advocates say early exposure to markets will give children access to the benefits of compound interest.
By the numbers: Even an initial $1,000 match could double the gains for eligible kids, depending on the market and timing.
- $1,000 invested in the S&P 500 18 years ago would be worth about $6,000 with dividends invested.
- $2,000 invested in late 2007 would be worth almost $13,000.
Yes, but: Critics warn the accounts could magnify inequality, since higher-income workers and corporate employees are more likely to make additional contributions or receive employer matches.
