A year after becoming law, the new savings and investment vehicle for children known as the Trump Accounts officially became operational on Saturday, July 4.
President Donald Trump rang the opening bell for Nasdaq and the New York Stock Exchange from the Oval Office on Monday to mark the first day of trading.
Trump Accounts now join the list of other existing tax-advantaged accounts intended to benefit kids’ futures (eg, custodial Roth IRAs, 529 plans, etc.), each of which has its own rules, limitations and benefits.
While Trump Accounts do nothing to lessen the complexity for families deciding which accounts best suit their needs and means, they have raised awareness of the value of investing in US children from birth, provide an avenue for third parties to contribute to a child’s future and provide federal seed money for newborns.
To date, more than 6 million Trump Accounts have been opened for children under age 18, according to the Treasury Department. Of those, 1.4 million will receive the much-touted $1,000 federal pilot contribution.
