President Donald Trump’s proposal for a new savings account for children with a one-time deposit of $1,000 from the federal government just got an important stamp of approval.
At the “Invest America” roundtable at the White House this week, several top CEOs, including Michael Dell and Goldman Sachs chief David Solomon, expressed support for “Trump Accounts,” which are part of the landmark Republican-backed “big beautiful bill” moving through Congress. The executives committed to contributing to the accounts of their employees’ children, and, in Dell’s case, matching the government’s seed money “dollar for dollar.”
Still, policy experts and financial advisors question whether the provision is the most effective way to save on behalf of your child.
Under the House measure, Trump Accounts — previously known as “Money Accounts for Growth and Advancement” or “MAGA Accounts” — can later be used for education expenses or credentials, the down payment on a first home or as capital to start a small business. Earnings grow tax-deferred, and qualified withdrawals are taxed at the long-term capital-gains rate.
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