Good Afternoon,
By now, many of you have heard about "Trump Accounts." The Trump Accounts program is a new inititative designed to introduce American children to the idea of saving and investing from a young age.
While Trump accounts are not expected to officially launch until July 4th, parents can go ahead and register eligible children on the new Trump Accounts website. Here is the link:
https://trumpaccounts.gov/
Children born between 2025 and 2028 are eligible for a Trump account. Once the program officially launghes, eligible, registered children will receive a $1000 Treasury contribution into their Trump Account, that can be invested in index funds AND grow tax deferred until the child reaches 18 years old.
The investment platform is still under construction at this time but will be handled by Bank of NY and Robinhood though the US Treasury will maintain operational control.
Parents, grandparents and others may contribute up to $5000 annually to a Trump account however, there is no obligation to contribute anything to get the $1000 Treasury contribution. To get the $1000, all a parent has to do is register their eligible child.
The purpose of these accounts is to encourage early and long term investing at a time when many young Americans are struggling to build wealth.
Please let us know if you have any questions.
Johanna