BNY to manage Trump Accounts ahead of program's launch

The Treasury Department announced Monday that the Bank of New York Mellon Corporation (BNY) has been designated as a financial agent of the federal government to support implementation of the Trump Accounts program ahead of its launch in July.

BNY will help develop the Trump Accounts app and manage the initial accounts, which are designed to support children’s long-term savings. Robinhood will serve as the brokerage and initial trustee for the accounts.

“Together, these partners will support Treasury’s goal of ensuring every eligible child can access a Trump Account quickly and easily,” the Treasury Department said in its announcement.

Trump Accounts are a new type of individual retirement account (IRA) that parents or guardians can elect to open on behalf of eligible children. Contributions to the investment accounts can be made by the employer of an eligible child’s parent or guardian or by certain government entities and charitable institutions.

The funds cannot be withdrawn until Jan. 1 of the calendar year in which the child turns 18, and there are annual contribution limits for the accounts.

The Treasury Department is contributing $1,000 to the accounts of children born between Jan. 1, 2025, and Dec. 31, 2028. Billionaires Michael and Susan Dell also announced plans in December to donate $6.25 billion in contributions to the investment accounts of 25 million children.

Contributions to the accounts cannot be made before July 4, 2026, according to the Internal Revenue Service (IRS).

“We are honored to be selected as financial agent for Trump Accounts. In collaboration with Robinhood, a leading financial technology platform committed to democratizing the markets for investors, we are helping to expand access to financial opportunity for all Americans,” BNY CEO Robin Vince said in an emailed statement on Monday.

“BNY has been part of the fabric of the U.S. financial system since our country’s founding and, through this landmark initiative, will help more Americans invest in our economy, strengthen U.S. capital markets and give more children a foundation for long-term financial security,” Vince continued.

Robinhood Markets Chair and CEO Vlad Tenev similarly said the company is “proud to power Trump Accounts with Robinhood’s technology, and to work alongside a historic and trusted institution like BNY.”

“Our task is clear: to provide the next generation of Americans with a world-class, intuitive platform to jumpstart their financial future,” Tenev added in an emailed statement.