Online brokerage Robinhood Markets (HOOD) says it will match the U.S. federal government’s $1,000 contribution to Trump accounts for its employees with eligible newborn children.
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Robinhood announced on social media that it will match the $1,000 federal contributions for its eligible employees. Trump accounts are a tax-deferred savings program for children 18 and under created through tax and spending legislation earlier this year.
The federal government in Washington, D.C. is seeding the accounts after July 4 with $1,000 for children with a Social Security number who are born between Jan. 1, 2025 and the end of 2028. On social media, Robinhood said, “Our mission is to democratize finance for all and we’re honored to help extend that mission to the next generation through this initiative.”
Other Contribution Matchers
Parents and guardians can open Trump accounts for eligible children after July 4 and fund them with up to $5,000 a year. The contributions aren’t tax deductible. Employer contributions made with pretax dollars count towards the $5,000 annual limit, as do contributions from friends and family.
Robinhood isn’t the only company that has committed to matching the government contribution. Other organizations that are also matching contributions include BlackRock (BLK), Charles Schwab (SCHW), and Charter Communications (CHTR).
On Dec. 2, Dell Technologies (DELL) founder Michael Dell said he would donate $6.25 billion to the program by depositing $250 into the accounts of about 25 million children under age 10 who aren’t eligible for the federal seed funding.
Is HOOD Stock a Buy?
Robinhood’s stock has a consensus Moderate Buy rating among 22 Wall Street analysts. That rating is based on 16 Buy, five Hold, and one Sell recommendations issued in the last three months. The average HOOD price target of $152.16 implies 26.20% upside from current levels.
