American Airlines will match the federal government’s $1,000 contribution to Trump Accounts for eligible employees’ children as part of a new benefit launching in 2027, the carrier confirmed to FOX Business.
The airline will make a one-time $1,000 contribution for each eligible child born between Jan. 1, 2025, and Dec. 31, 2028, who has established a Trump Account and qualifies for the federal government’s $1,000 contribution.
The match applies on a per-child basis, meaning an employee with two qualifying children could receive two $1,000 federal contributions and two additional $1,000 contributions from the airline. The benefit will be available to all U.S.-based American Airlines employees.
American will also allow eligible employees to direct up to $2,500 in pretax earnings each year into their dependent children’s Trump Accounts beginning in 2027.
AMERICAN AIRLINES BETS BIG ON INTERNATIONAL TRAVEL WITH 7 NEW ROUTES
Approximately one-third of American’s workforce has children who would qualify for a Trump Account and could therefore take advantage of the pretax contribution option, according to the airline. American did not provide an estimate of how many employees or children could qualify for the company’s $1,000 matching contribution.
American Airlines Chief People Officer Cole Brown announced the new benefit to employees Monday, telling team members the airline was looking for additional ways to help them build long-term financial security for their families.
“American will support eligible team members who choose to participate in the new Trump Accounts program by matching the federal contribution,” Brown said. “For eligible children born between 2025 and 2028 who have established a Trump Account, American will match the federal government’s one-time $1,000 contribution with an additional one-time $1,000 contribution of our own.”
GOLDMAN SACHS TO CONTRIBUTE $1,000 TO TRUMP ACCOUNTS FOR ELIGIBLE CHILDREN OF EMPLOYEES
The airline said the benefit is part of a broader effort to give employees more ways to save for their children’s futures, alongside benefits including its 401(k) program, healthcare and career development resources.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 12.95 | -0.48 | -3.57% |
Trump Accounts, also known as 530A accounts, are tax-advantaged investment accounts for children. Eligible children born between 2025 and 2028 can receive a one-time $1,000 federal contribution after an account is established.
Parents, guardians, grandparents and others can contribute up to $5,000 annually to the accounts until the year before the beneficiary turns 18, according to CNBC. The Treasury Department has also proposed regulations that would allow employees to fund dependent children’s accounts with pretax earnings directly from their paychecks.
More than 50 companies have committed to contributing to Trump Accounts for their workers in some capacity, according to the U.S. Treasury Department. Goldman Sachs and Morgan Stanley are among the companies that have also offered to match the government’s $1,000 contribution, CNBC reported.
CLICK HERE TO GET FOX BUSINESS ON THE GO
American said it is working to implement the new benefits and plans to provide employees with additional information about how to participate in the coming weeks.
Read the full article here
