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'Trump Accounts' for Kids Are Coming Soon: 3 Things to Know
The Treasury and IRS issued access rules for $1,000 tax-deferred accounts targeting children in lower-income ZIP codes, seeded by a $6.25 billion private donation.
- The U.S. Treasury Department and the Internal Revenue Service are issuing guidelines to give families access to $1,000-seeded accounts created by a Republican tax-and-spending megabill that became law in July.
- Loosely based on the 2010 'baby bonds' idea by economists Darrick Hamilton and William Darity, Brookings Institution says Trump’s design is less generous and may favor wealthier families.
- Parents or legal guardians must set up and manage the accounts using IRS Form 4547, with investments limited to low-cost U.S. stock index funds; beneficiaries access funds at age 18 and full control at age 30.
- Residency in ZIP codes with median family income below $150,000 determines eligibility, with Michael and Susan Dell donating $6.25 billion to seed 25 million accounts at $250 each.
- Implementation questions remain as officials fill in program details, as Trump accounts function like IRAs with strings from philanthropic donors and cash flows to children born between 2016 and 2024.
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Who Will Benefit From the New 'Trump Accounts' for Kids?
It's well known that Donald Trump loves to send taxpayer dollars directly to voters with packaging intended to make the bounty seem like a gift from his own self. So it's not surprising that his signature One Big Beautiful Bill Act had a provision creating something called "Trump Accounts" that would be set up for all American children born between 2025 and 2028 with a $1,000 "seed deposit" from the federal government. A nice birthday gift for t…
·Chicago, United States
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Total News Sources22
Leaning Left3Leaning Right2Center15Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
15%
C 75%
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