politics
U.S. Treasury to Open Trump Accounts on July 4 With $1,000 for 1.5 Million Newborns
The U.S. Treasury will open Trump Accounts on July 4 and deposit $1,000 in each eligible newborn's account. About 5 million additional children under 18 will also see their accounts activated that day.
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About 1.5 million American babies born between January 1, 2025, and December 31, 2028, will receive $1,000 in seed money in new Trump Accounts on July 4, Usa Today reported. The U.S. Department of the Treasury will open the accounts on Independence Day and invest the funds in low-cost index funds.
The money will remain invested until each child turns 18, at which point the account converts to a traditional IRA. Roughly 5 million additional children under age 18 who have already signed up will have their accounts activated on the same date, though they will not receive the $1,000 seed payment.
Up to 25 million children aged 10 or younger living in qualifying ZIP codes may receive an additional $250 charitable contribution from the Michael & Susan Dell Foundation.
Families, relatives, and employers may contribute up to $5,000 per child annually, with the limit adjusted for inflation after 2027. Employer contributions of up to $2,500 are excluded from taxable income when made through the designated program. Government entities and charities may make contributions for groups of children without counting toward the annual cap.
Accounts require no initial contribution and can be opened at any time for children under 18 through the portal at Trumpaccounts.gov, the IRS website, or the new Treasury app. In 2024 the Census Bureau counted 73. Eligible newborns must be U.S.
Citizens with Social Security numbers. Withdrawals are not permitted until the year the child turns 18.
