Trump Accounts App Launches Thursday for 6 Million Children Ahead of $1,000 Federal Deposits
Updated
Updated · CNN · May 27
Trump Accounts App Launches Thursday for 6 Million Children Ahead of $1,000 Federal Deposits
6 articles · Updated · CNN · May 27
Thursday morning, the Trump Accounts app will appear in Apple and Google stores, letting parents view balances and make investment choices for children’s IRA-style savings accounts.
Nearly 6 million children already have accounts set up, Treasury Secretary Scott Bessent said, with Robinhood and Bank of New York selected to manage the program’s initial phase.
July 4 is the first day accounts can be invested and eligible children can receive the federal $1,000 seed contribution, though deposits may not post until July 6 because the holiday falls on a Saturday.
Parents, employers, relatives and friends can contribute up to $5,000 a year, but funds generally cannot be tapped before age 18 and must go into low-cost broad U.S. stock index funds or ETFs.
Children must be U.S. citizens under 18 with a valid Social Security number, and the app initially offers eight financial-literacy modules while families wait for investing to open.
With investment options so tightly restricted, what does this mean for the long-term growth of these new accounts?
Could a small gift to your child's new savings account create a surprise tax filing headache for your family?
How can the government's $1,000 seed money for newborns grow to a projected $200,000 by retirement?