Rupert Murdoch’s Fox Corporation and News Corporation will match the federal government’s one-time $1,000 contribution to the White House’s new “Trump Accounts” for eligible U.S. employees who opt into the program, the companies said on Thursday.
Scheduled to launch on July 4, Trump Accounts are a new tax-advantaged retirement savings account program. Through a pilot program, the U.S. Treasury will invest $1,000 immediately into an index fund for every child born in the U.S. between Jan. 1, 2025, and Dec. 31, 2028. In order to claim the investment, families must check a box on a Form 4547 tax document.
“This contribution match will help our employees provide a strong financial foundation for their children as they learn to save, invest and grow a healthy financial future,” Fox CEO Lachlan Murdoch said in a statement.
“The company’s matching contribution to our employees’ children is intended to fortify their finances at a crucial moment in their development,” News Corp. CEO Robert Thomson added.
While the $1,000 deposit is exclusive to newborns, any American below the age of 18 is eligible to open a Trump account. The accounts can be funded through donations from parents, friends, employers, wealthy Americans, philanthropic organizations or state governments, with contributions capped at $5,000 each year.
The U.S. Treasury estimates, based on historical growth rates, that the $1,000 deposit alone should grow to at least half a million dollars by the age of retirement. By contributing the maximum amount annually, the Council of Economic Advisers estimates that a child’s Trump Account could be worth more than $1 million at age 28 and tens of millions by the age of retirement.
At age 18, Trump Account recipients will have the option of continuing to invest for retirement or to use the funds to help purchase a new home or further their education.
In addition to Fox and News Corp., companies that have agreed to offer match contributions for their eligible employees include Comcast, Charles Schwab, Charter Communications, Broadcom, Bank of New York Mellon, Uber, Intel, IBM, JP Morgan, Chipotle, Coinbase, Steak ‘n Shake, State Street, Mastercard, Visa, Block, Robinhood, SoFi, Chime, Russel Investments and Dell Technologies.
Michael and Susan Dell also pledging to donate $6.25 billion of their own money to help fund Trump Accounts for 25 million children under the age of 10, while Ray and Barbara Dalio pledged $75 million to help fund Trump Accounts for more than 300,000 children in Connecticut.
According to the Treasury, approximately 500,000 Americans have elected to open a Trump Account for their children.
