American Airlines announced Monday it will match the federal $1,000 contribution to Trump Accounts for children of employees, joining a growing list of major employers offering matching programs for the new tax-advantaged savings accounts.
The airline said it will provide an additional one-time $1,000 contribution for each eligible child of an employee who opens a Trump Account. CEO Robert Isom said in a statement that the company’s purpose is “to care for people on life’s journey, and that includes helping our team members build a strong financial future for themselves and their families.”
Trump Accounts, also known as 530A accounts, are custodial investment accounts for U.S. children under age 18. The federal government provides a one-time $1,000 seed contribution for children born between January 1, 2025, and December 31, 2028. About 1.4 million children have been signed up for the accounts and qualify to receive that initial deposit, according to the latest Treasury Department data.
American Airlines plans to enhance its Trump Account offerings beyond the match. Starting in 2027, eligible employees will be able to contribute up to $2,500 of pretax earnings annually to their children’s Trump Accounts. Roughly one-third of the company’s nearly 140,000 global employees will have access to this pretax contribution option, according to the carrier.
The airline is part of a broader corporate trend. More than 50 companies have committed to contributing to Trump Accounts for their workers, according to the U.S. Treasury Department. Financial firms Goldman Sachs and Morgan Stanley have also announced they will fully match the government’s $1,000 seed contribution for employees’ children.
Treasury Secretary Scott Bessent praised the employer participation. “It is encouraging to see our nation’s leading companies, including American Airlines, supporting this effort by offering matching contributions for their employees,” Bessent said in a statement provided to CNBC.
Financial experts generally recommend that families enroll in Trump Accounts when employer or government matching is available, as it represents free money toward a child’s long-term savings. Parents, guardians, grandparents, and others can contribute up to $5,000 per year to a Trump Account until the year before the beneficiary turns 18. Funds grow tax-deferred and can be withdrawn penalty-free starting when the child reaches age 18.
Sources
- CNBC — American Airlines announcement of $1,000 matching contribution, CEO statement, employee contribution structure, and broader employer matching trend
- U.S. Treasury Department — Trump Account enrollment data and employer contribution guidance
