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Baby Savings

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Trump Accounts Go Live: Free $1,000 for Newborns Spurs Georgia Savings Debate
finance7 days ago

Trump Accounts Go Live: Free $1,000 for Newborns Spurs Georgia Savings Debate

Trump Accounts are live, offering a $1,000 federal deposit for babies born in 2025–2028 and allowing up to $5,000 in after-tax contributions annually. The accounts are opened via IRS Form 4547 with a partner firm and, for holders who reach 18, convert to a traditional IRA. If a child doesn’t qualify for the $1,000, traditional savings options like a child IRA, a 529 plan, or a brokerage account may be more advantageous. The Dell Foundation has pledged billions in support, with estimates of additional funds for Atlanta families; experts recommend weighing long-term goals (education, housing, retirement) and consulting financial professionals before choosing the best path for a child’s savings.

via USA Today|
#529-plan#baby-savings#finance
Independence Day Launches $1,000 Seed for New Baby Accounts
personal-finance11 days ago

Independence Day Launches $1,000 Seed for New Baby Accounts

USA TODAY reports that the Trump Accounts program launches on July 4, seeding about 1.5 million newborns with $1,000 that grows tax-deferred until age 18 when it converts to a traditional IRA; additional sign-ups cover roughly 5 million children under 18, with up to 25 million under-10 in qualifying ZIP codes eligible for a $250 Dell Foundation gift, and families can contribute up to $5,000 per child per year (employers up to $2,500 count toward the cap). The accounts invest in low-cost index funds and may later convert to a Roth IRA, though 529 plans are often viewed as more flexible. Sign up at trumpaccounts.gov or the IRS portal, and you can open an account any time before the child turns 18.

via USA Today|
#baby-savings#education-savings#government-program