Delta and American Airlines will match federal contributions to Trump Accounts set up by their employees, the carriers announced this week.
Both airlines said they will contribute $1,000 to the tax-advantaged accounts, matching the one-time $1,000 seed funding provided by the federal government. Trump Accounts can be set up for any U.S. citizen under the age of 18, but only children born between Jan. 1, 2025, and Dec. 31, 2028, qualify for the federal contribution.
The accounts became available for use in July.
“Delta people have made it clear they want to take advantage of every opportunity to build a solid financial foundation for themselves and their families,” Executive Vice President and Chief People Officer Allison Ausband said in a news release. “This match is the latest in our ongoing commitment to invest in our people and their financial wellbeing through profit sharing, base pay raises, our Emergency Savings Program, and more.”
American told CNBC on Monday that it will match the initial federal contribution to help qualifying employees build savings for their children. The carrier said thousands of children of American workers could be eligible for the benefit.
“At American Airlines, our purpose is to care for people on life’s journey, and that includes helping our team members build a strong financial future for themselves and their families,” CEO Robert Isom said in a statement provided to the channel.
According to the White House, parents can contribute up to $5,000 per year per qualifying child. The money will be invested in a “diversified investment vehicle designed to maximize long-term growth,” and can be monitored through a dedicated mobile app.
