Parents Can Fund Trump Accounts From July 4, Claiming $1,000 Bonus for Eligible Children
Updated
Updated · CNN · Jun 27
Parents Can Fund Trump Accounts From July 4, Claiming $1,000 Bonus for Eligible Children
3 articles · Updated · CNN · Jun 27
Summary
July 4 marks the start of parent contributions to Trump Accounts, with a $1,000 federal deposit available for children born from 2025 through 2028.
Trump Accounts let parents, relatives, friends and employers contribute a combined $5,000 a year even if a child has no earned income, but money generally cannot be withdrawn before age 18.
At 18, control shifts to the child and withdrawals before age 59 1/2 face income tax plus a 10% penalty unless used for qualified expenses such as college or a first home.
Financial advisers say the new accounts are often less efficient than 529 plans for education, custodial Roth IRAs for retirement, or brokerage accounts for flexibility despite the federal seed money.
The broader takeaway is to match the account to the goal: experts call the $1,000 incentive attractive, but not a reason by itself to choose Trump Accounts.