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Trump Accounts

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Payroll-Powered Trump Accounts Could Let Parents Save Tax-Free for Kids
investing-education10 days ago

Payroll-Powered Trump Accounts Could Let Parents Save Tax-Free for Kids

The Treasury and IRS are proposing guidelines to let families contribute to Trump Accounts through payroll on a pretax basis, with employees able to contribute up to $2,500 per year and employers able to match up to $2,500 per year; in addition, children born between 2025 and 2028 could receive a one-time government contribution of $1,000 with up to $5,000 annually in total contributions including employer funds. Trump Accounts would work like traditional IRAs, with taxes owed on withdrawals after age 18 and a 10% penalty for taxable amounts withdrawn before 59½; enrollment would use IRS Form 4547 and a public hearing on Oct 15, 2026 will determine final rules. More than 50 companies have pledged to contribute, and experts say the programs could help attract and retain employees while expanding savings options for families.

via Yahoo Finance|
#employer-matching#government-contribution#investing-education
Trump’s Kids’ Savings Plan: Promises vs. Real-World Limits
politics1 month ago

Trump’s Kids’ Savings Plan: Promises vs. Real-World Limits

FactCheck.org examines Trump’s ‘Trump accounts’ for children: the program seeds accounts with $1,000 for births in 2025–2028 and adds a $250 bonus for millions of kids in low-income ZIP codes, while donors can contribute up to $5,000 per year. The funds are invested in a low-cost S&P 500 ETF and grow tax‑deferred until age 18, when withdrawals for qualified expenses become available. Reaching hundreds of thousands by age 18 would require substantial annual contributions and strong market gains; many low‑income families are unlikely to contribute enough, so real-world growth is likely much smaller, a point raised by economists and policy analysts. Critics say the plan mostly benefits wealthier families or external donors, while supporters frame it as a meaningful savings tool.

via FactCheck.org|
#child-savings-accounts#financial-experts#politics
Bisignano to lead expanded Trump Accounts rollout, Treasury confirms
policy1 month ago

Bisignano to lead expanded Trump Accounts rollout, Treasury confirms

The Treasury Department says Frank Bisignano will oversee the expanded rollout of Trump Accounts, a tax-advantaged savings program that debuted July 4, while retaining his roles as IRS chief and SSA commissioner. Accounts allow up to $5,000 per year per child into a tax-deferred account, with withdrawals generally allowed at 18 and taxes/penalties for early withdrawals (with some exceptions). The program already has about 6.5 million participating families and includes a one-time $1,000 government contribution for children born 2025–2028 as part of broader access expansion aimed at boosting participation in stock-market gains.

via CNBC|
#frank-bisignano#irs#policy
Trump Accounts eyes auto-creation of 70 million child investment accounts
business1 month ago

Trump Accounts eyes auto-creation of 70 million child investment accounts

Altimeter Capital's Brad Gerstner says Trump wants to automatically create Trump Accounts for all American children—potentially up to 70 million—within about 90 days, pending coordination with the Treasury, White House, and SSA. The program is currently opt-in, with eligible newborns receiving $1,000 funded by the Treasury; private donors have contributed millions, and proponents argue auto-enrollment could raise participation and impact.

via Business Insider|
#auto-enrollment#business#child-accounts
Trump Accounts promise big returns, but experts urge caution on long-term projections
business1 month ago

Trump Accounts promise big returns, but experts urge caution on long-term projections

Trump Accounts offer a newborn seed and up to $5,000-per-year contributions with the aim of turning a child’s savings into a sizable sum, but four financial planners say the flashy projections assume long-term stock-market gains that are unlikely to persist. Using conservative 7% returns, maxed contributions could total about $1 million by age 45 (roughly $185,000 by 18), with time and compounding doing most of the work. Key caveats include tax treatment (tax-deferred, taxed as ordinary income on withdrawal), the risk of a child controlling the account at 18, and the need to treat the Trump Account as an addition to—not a replacement for—other vehicles like 401(k)s and 529 plans. Some advisers even suggest converting to a Roth IRA later. Employers’ contributions can help, but the bottom line remains: this is a useful tool with significant caveats, not a guaranteed path to wealth.

via Yahoo Finance|
#business#compounding#education-savings
Can Trump's Baby Savings Plan Deliver for America's Kids?
business1 month ago

Can Trump's Baby Savings Plan Deliver for America's Kids?

BBC reports on the launch of Trump Accounts, a new US children’s savings scheme offering a $1,000 starter for babies born 2025–2028 and up to $5,000 yearly contributions, invested in a low-cost index fund; while officials say it expands stock ownership for kids, critics say it’s too complex and may mainly help relatively well-off families; as of launch, about six million families had signed up and deposits reached around $125 million, with projected outcomes ranging from roughly $6,000 by 18 with no further contributions to potentially $271,000 with max annual input.

via BBC|
#business#education-funding#personal-finance
White House: Americans Pledge $125M to Trump Accounts in Five Days
politics1 month ago

White House: Americans Pledge $125M to Trump Accounts in Five Days

The White House says Americans have invested about $125 million in Trump Accounts in the first five days since their July 4 launch. Trump Accounts are investment accounts for children born 2025–2028, with the U.S. Treasury pledging to deposit $1,000 per child. Donors include SpaceX president Gwynne Shotwell (and her husband), Dell CEO Michael Dell and his wife, Ray Dalio and his wife, Altimeter Capital’s Brad Gerstner, and Nicki Minaj; companies like Goldman Sachs, Micron, and Bank of America have also announced contributions. The push has attracted attention as a major early showing of private funding for the program.

via Business Insider|
#child-investment-accounts#dell-family#gwynne-shotwell
Parents Weigh Skepticism Over Trump-Backed Kids Accounts
politics1 month ago

Parents Weigh Skepticism Over Trump-Backed Kids Accounts

Trump Accounts offer $1,000 seed money for children through a government-backed program, but many parents remain cautious about scams and political risk. Financial advisers say to take the funds and pair them with other savings vehicles like 529 plans or Roth IRAs, noting the accounts convert to a Traditional IRA at age 18 and that donors may add money in some cases. The program’s projected cost to taxpayers could be around $15 billion through 2034.

via HuffPost|
#child-investment#financial-advisors#government-seed-money
SpaceX stock gift to 2 million kids could turn into a future fortune
business1 month ago

SpaceX stock gift to 2 million kids could turn into a future fortune

Gwynne Shotwell announced she and her husband would donate one share of SpaceX stock to each of more than two million children via Trump Accounts, focusing on 11-to‑17‑year‑olds in lower-income areas. At about $150 a share at the time, the donation was worth roughly $296 million, though the future value depends on SpaceX’s performance and market sentiment. President Trump praised the move. While a single share per child isn’t life‑changing by itself, it gives millions of youngsters an early stake in SpaceX, with potential upside if the stock appreciates over time.

via Yahoo Finance|
#business#gwynne-shotwell#spacex
Trump Accounts: The Real Math Behind a Kid's IRA
economy1 month ago

Trump Accounts: The Real Math Behind a Kid's IRA

24/7 Wall St. analyzes the Trump Accounts (530A) program—a government seed of $1,000 per child plus private philanthropy—that has opened millions of accounts and could theoretically reach about $13 million by age 55 with 18 years of $5,000 annual contributions and strong stock returns. Realistically, with smaller contributions (e.g., $50/month) and average market performance, a child might reach tens of thousands by 18 and $500k–$600k by 55 if left untouched. The article notes the tax treatment (earnings taxed as ordinary income, withdrawals taxed, with 529 plans or custodial Roth IRAs often being better), the potential risk of a child gaining full control at 18, and highlights philanthropic commitments (Dell, Micron, Dalio) that boost the program.

via 24/7 Wall St.|
#530a#economy#retirement-savings
Trump Applauds SpaceX Stock Gift to Trump Accounts Benefiting Millions of Children
politics1 month ago

Trump Applauds SpaceX Stock Gift to Trump Accounts Benefiting Millions of Children

President Trump publicly thanked SpaceX president Gwynne Shotwell and her husband for donating SpaceX stock to Trump Accounts, a tax-advantaged program seeded with Treasury funds to help more than 2 million American children in lower-income areas; the gift was valued at roughly $296–325 million depending on SpaceX’s share price, with Shotwell noting it would fund stock gifts for each eligible child and making her one of the program’s largest individual donors; Elon Musk’s donation status was not confirmed.

via Business Insider|
#gwynne-shotwell#politics#spacex
Opening a Baby Trump Account: how the $1,000 government gift works and why it matters
economy1 month ago

Opening a Baby Trump Account: how the $1,000 government gift works and why it matters

Author Mia de Graaf documents opening a Trump Account for her newborn—a government-backed savings vehicle that grants a $1,000 contribution and can host additional private deposits. Sign-up involves InvestAmerica.org, an IRS Trump Accounts portal, ID.me verification, and a 4547 form; the initial $1,000 is invested in SPYM and can’t be touched until the child turns 18. Experts say such accounts can foster a future-focused mindset, but families should still prioritize debt repayment and emergency savings. The author plans to hold off on extra contributions for now while taking advantage of the government money.

via Business Insider|
#child-savings-accounts#economy#government-contribution
Trump’s Pitch Sparks Dell Stock Rally Amid AI Boom
business1 month ago

Trump’s Pitch Sparks Dell Stock Rally Amid AI Boom

President Trump urged Americans to buy Dell computers, sending Dell stock up as much as 9% intraday and finishing about 4% higher; the White House highlighted Michael and Susan Dell’s $6.25 billion contribution to the Trump Accounts as part of a broader Trump Effect fueling a rally driven by strong earnings and AI demand. Dell reported a record $43.8 billion in revenue last quarter, up 88% year over year; the piece notes other Trump Accounts pledges from SpaceX (2 million shares) and investments by Intel, Micron, Nvidia, and Trump’s own stock purchases.

via Business Insider|
#ai#business#dell