By Leada Gore
al.com
(TNS)
More than 7 million Trump Accounts – the newly launched savings accounts for American children—have been established since they launched earlier this year, according to the White House.
The tax-advantaged accounts are available to any child in the U.S. under the age of 18 with a Social Security number. Babies born between Jan. 1, 2025, and Dec. 31, 2028, are eligible for $1,000 in federal seed money, regardless of family income.
So far, 1 million people have claimed the federal money for their newborns.
According to Secretary of Treasury Scott Bessent, 86% of Trump Account participants come from families earning less than $200,000 annually.
The accounts officially launched July 4th.
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How to set up a Trump Account
Parents and others can contribute up to $5,000 per year into the accounts that will be invested in a portfolio of low-cost index funds. If fully funded and left untouched, the White House projects it could grow to as much as $1.9 million by age 28.
If you have a child born during the seed money eligibility period, you have to set up the Trump Account to receive the money. You can set up your account by filing Form 4547 with the IRS with your taxes or at any time during the year. The Internal Revenue Service estimates it takes five to 10 minutes to establish an account. You can set up your account here.
Funds can be accessed without penalty when the child turns 18, as long as they are used for qualified expenses such as education costs, buying a home or starting a business. Withdrawals can be subject to restrictions, however, and would be taxed at ordinary income rates. The funds will transfer to the child’s control when they turn 18.
Photo credit: The White House/X
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Tags: children, investment accounts, Payroll, Taxes, Trump Accounts
