News Corp Supports New Trump Investment Program
On Thursday, News Corp joined a growing list of major employers endorsing a new initiative, as the Treasury declared it would match a one-time $1,000 contribution to the accounts set up for eligible employees.
Beginning July 4, parents will have the opportunity to create a tax-advantaged investment account, termed a Trump Account (530A), for their children who are U.S. citizens under the age of 18 and who possess a Social Security number.
The U.S. Treasury plans to contribute $1,000 to the accounts of children born between 2025 and 2028, and News Corp has promised to match that amount with an additional one-time donation.
News Corp, which owns entities such as The Post, Dow Jones, and The Wall Street Journal, announced that Fox Corp., a co-owner, would also match employee contributions to their children’s accounts.
According to News Corp CEO Robert Thomson, “The matching contributions to employees’ children are aimed at fortifying their finances at a crucial growth stage,” as stated in a recent announcement.
This program has garnered backing from significant companies, including Bank of America, JPMorgan Chase, BlackRock, and Chime Financial, which also intend to match government contributions.
The funds accumulated in these accounts would be invested by the government in low-cost index funds, assisting in various needs, like setting up a business, covering tuition costs, or saving for a home down payment.
Although these accounts don’t offer the same tax advantages as 529 plans or Roth IRAs—typically geared toward college and retirement—they do allow substantial contributions from corporations and philanthropists.
Withdrawals from a Trump Account will be restricted until the beneficiary reaches 18 years of age, after which the assets will transfer to an IRA, incurring taxes upon withdrawal.
Interestingly, rapper Nicki Minaj, who recently participated in an event with President Trump to promote the initiative, has pledged between $150,000 and $300,000 to support her “Burbs” fans’ savings.
In a remarkable move, in December, Michael and Susan Dell announced a historic $6.25 billion donation to Trump accounts for 25 million children in the U.S., averaging $250 per account.
Dell Technologies has also indicated it would match the Treasury’s $1,000 contribution.
For contributions to these accounts, the limits are set at $5,000 annually for individual contributions and $2,500 per year for employer contributions.
