Russell Investments, ICI Join BlackRock, Charles Schwab Among Those Announcing Trump Account Contribution Plans

Part of July 2025’s One Big Beautiful Bill Act authorized a children’s savings account program, now known as Trump Accounts, to provide a $1,000 contribution from the U.S. Treasury into a tax-advantaged account for eligible children. The pilot program, intended to kick off on this year’s July 4, will provide that contribution to children born in the U.S. between 2025 and 2028.

Since the first framework for the accounts was released by the Department of Treasury and the IRS on December 3, 2025, several corporations have pledged matching contributions to accounts of children of their employees, including the Bank of New York Mellon Corp., BlackRock Inc., the Charles Schwab Corp. and Russell Investments Inc.

Both Russell Investments and the Investment Company Institute followed suit on January 14, joining those and other companies in pledging to match the government’s $1,000 contribution.

A Mercer poll conducted in August 2025 found that 36% of the 670 employers polled had already decided not to contribute, while 60% were undecided, 4% said they were considering contributions, and only 0.3% reported they were planning to make contributions.

“While many employers are prioritizing benefits that enhance employees’ financial wellness, those interested in adding Trump Accounts to their benefits menu are still awaiting crucial guidance from the IRS and other regulators on how to facilitate access to these accounts,” wrote Dorian Smith, the U.S. leader for Mercer’s law and policy group, in an email to PLANADVISER on January 16.

The framework released in December explained that during the account’s first 18 years, it can only invest (as directed by the account’s responsible party, typically the adult who opened it) in certain low-cost, index-tracking investments. Account holders cannot make withdrawals except in limited cases such as rollovers or the death of the beneficiary. Unlike individual retirement accounts, contributions can be made even if the child has no earned income. Additional contributions may total $5,000 per year (indexed to inflation), including employer contributions, capped at $2,500 per year, and private contributions (such as those made by relatives).

Once a Trump Account holder turns 18, the account will convert into a regular IRA and be subject to the applicable tax rules.

Treasury’s December 2025 notice stated that comments will be accepted through February 20. In addition to any changes, more details are still to be finalized and will likely affect many companies’ decisions about whether and how to include Trump Account contributions among their benefits.

Smith wrote that other factors, “such as vendor selection, required documentation, communication, adherence to non-discrimination rules and understanding potential [Employee Retirement Income Security Act] status, along with how to administer employer and employee pre-tax contributions, remain critical pieces of this puzzle.”