American Airlines is giving eligible employees’ children an extra $1,000 in Trump Accounts. American Airlines will match the US government’s one-time $1,000 contribution to Trump Accounts for eligible employees’ children. The new benefit will begin in 2027, the airline confirmed.
The airline’s $1,000 payment will be made once for each qualifying child. American Airlines will make a one-time $1,000 contribution for every eligible child born between January 1, 2025, and December 31, 2028. The child must have a Trump Account already set up and must qualify for the federal government’s $1,000 contribution, according to FOX Business.
Trump Account $2,000 benefit
The benefit can add up to $2,000 for each eligible child. The federal government will provide $1,000, while American Airlines will add another $1,000. This means each qualifying child could receive $2,000 in total from the government and the airline.
Employees with more than one qualifying child can receive the benefit for each child. The $1,000 airline contribution will apply per child, not per employee. For example, an American Airlines employee with two qualifying children could receive two $1,000 federal contributions and two $1,000 contributions from the airline, according to FOX Business.
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American Airlines employee benefit
{{/usCountry}}Also read: Why is the US bond market under pressure? Japan, Fed rates, AI borrowing and $40T debt explained
American Airlines employee benefit
{{/usCountry}}The benefit is open to all U.S.-based American Airlines employees. American Airlines said the new benefit will be available to all of its employees based in the US, as long as their children meet the Trump Account requirements.
$2,500 pretax contribution
American Airlines is also offering a way to add more money to the accounts. Starting in 2027, eligible employees will be able to put up to $2,500 a year from their pretax earnings into their dependent children’s Trump Accounts.
This pretax option could help a large number of American Airlines workers. The airline said about one-third of its workforce has children who would qualify for a Trump Account. These employees could use the new pretax contribution option to save more money for their children.
Who gets the $1,000 match?
American Airlines has not said how many workers will get the $1,000 company match. The airline did not provide an estimate of how many employees or children could qualify for its separate $1,000 matching contribution, according to FOX Business.
Cole Brown announces new benefit
American Airlines announced the new benefit to its employees on Monday. American Airlines Chief People Officer Cole Brown told employees that the company was looking for more ways to help workers build long-term financial security for their families.
Brown said American Airlines will match the government's contribution. “American will support eligible team members who choose to participate in the new Trump Accounts program by matching the federal contribution,” Brown said, according to FOX Business.
Trump Account eligibility
The company explained exactly who will receive its $1,000 contribution. Brown said children born between 2025 and 2028 who have established a Trump Account and qualify for the federal government's $1,000 payment will receive another one-time $1,000 contribution from American Airlines.
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What are Trump Accounts?
Trump Accounts are designed to help families save and invest for children. Trump Accounts, also known as 530A accounts, are tax-advantaged investment accounts created for children. Eligible children born between 2025 and 2028 can receive a one-time $1,000 federal contribution after an account is established.
Families and other people can also add money to the accounts. Parents, guardians, grandparents and other eligible contributors can put up to $5,000 a year into a Trump Account. The contributions can continue until the year before the child turns 18, according to CNBC.
More companies back Trump Accounts
Employees may also be able to contribute through their paychecks. The US Treasury Department has proposed rules that would allow employees to put money into their dependent children’s Trump Accounts directly from their pretax paychecks.
American Airlines is not the only company supporting Trump Accounts. More than 50 companies have committed to contributing to Trump Accounts for their workers in some form, according to the US Treasury Department. Other major financial companies have also offered a $1,000 match. Goldman Sachs and Morgan Stanley are among the companies that have offered to match the government's $1,000 contribution, CNBC reported.
American Airlines sees the new benefit as part of its wider employee benefits package. The airline said the Trump Account benefit is part of a broader effort to give employees more ways to save for their children’s future.
The new program will come alongside other employee benefits. American Airlines pointed to existing benefits such as its 401(k) retirement program, healthcare and career development resources as part of its wider support for employees and their families.
Employees will get more details before the program starts. American Airlines said it is currently working to put the new benefits in place. The company plans to give employees more information about how to participate in the coming weeks.