Trump Accounts for children launch July 4 with federal seed deposits
The US Treasury launched Trump Accounts on July 4, tax-advantaged investment accounts for American children, with a one-time federal deposit seeded into each eligible newborn's account. Families can add their own contributions up to an annual cap.
The US Treasury launched Trump Accounts on July 4, tax-advantaged investment accounts for American children. Under the program, the federal government seeds each eligible newborn's account with a one-time deposit, and families can add their own contributions up to an annual cap.
The Treasury designated low-cost index funds from BlackRock and Vanguard as approved investment options and set rules on when the money can be withdrawn. The funds generally cannot be accessed before adulthood, with conditions for uses such as education or a first home.
Financial advisers say the accounts could give children a long runway for compound growth. But they caution that fees, contribution limits and withdrawal restrictions vary, urging parents to compare the program with existing tax-advantaged college and custodial accounts.
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