"Modeled after 401(k)s and IRAs, the accounts will track broad stock indexes like the S&P 500, allowing tax-free growth until age 18, when they convert to retirement savings accounts. Families and employers can add up to $5,000 annually, aiming to foster early financial literacy and compound returns, helping kids fund education, homes, or startups."
"In June, President Trump announced the initiative at a White House roundtable that was attended by several top executives from major corporations, including Goldman Sachs ( NYSE:GS) CEO David Solomon. Solomon lavished praise on the initiative, stating the plan "binds future generations to the benefits of America's great companies and markets." He called early investments "far-reaching" and stressed their role in teaching long-term saving, with Goldman Sachs "proud to support" the effort."
"Goldman seeks participation through employer-led channels , aligning with the Trump Accounts' core guidelines for corporate involvement. According to the investment bank, firms can donate up to $2,500 per year to accounts held by employees' children under 18 or dependents. These contributions - capped within the $5,000 total annual limit - are not tax-deductible but rather encourage broad workforce benefits. Goldman Sachs plans to roll out matching programs, meeting employee contributions dollar-for-dollar up to the threshold, starting in 2026 once IRS rules are finalized. This targets Goldman's 45,00"
Trump Accounts are tax-deferred investment vehicles seeded with a $1,000 government deposit for newborns born January 1, 2025 through December 31, 2028. Modeled on 401(k)s and IRAs, the accounts track broad stock indexes such as the S&P 500 and grow tax-free until age 18, when they convert into retirement savings accounts. Families and employers may contribute up to $5,000 annually, with employers able to donate $2,500 per child and Goldman Sachs planning dollar-for-dollar matching beginning in 2026. Contributions are not tax-deductible. The program aims to promote compound returns, financial literacy, and funding for education, homes, or startups.
Read at 24/7 Wall St.
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