Trump Accounts for kids launch July 4: How to get $1,000
Trump hosts summit to launch ‘Trump Accounts’
President Trump delivers remarks on Trump Accounts in Washington, D.C. Wednesday.
President Donald Trump is launching his Trump Accounts initiative on Independence Day, offering $1,000 to families with children born during Trump’s second term.
Here’s what to know about the new investment accounts:
Trump Accounts are new accounts that invest in the stock market on a child’s behalf. The child can’t access the money until they turn 18, except in rare circumstances. The money can only be used for specific purposes, like school tuition or a down payment on a home.
Parents can contribute up to $2,500 annually in pretax income, similar to retirement accounts. Parents’ employers, relatives, friends, local governments and philanthropic groups can also pitch in. Yearly contributions are capped at $5,000, but contributions from governments and charities don’t count toward that total.
Assuming a 7% annual return, the $1,000 in seed money would grow to roughly $3,570 over 18 years.
Who gets $1,000?
To qualify for the seed money, the baby must be a U.S. citizen and have a Social Security number.
Accounts boosted by billionaires
Billionaires have pledged billions of dollars to the Trump Accounts beyond what the government has already promised. Michael Dell, the founder of Dell Technologies, and his wife, Susan, said they’ll give $6.25 billion to the accounts of some kids who don’t qualify for the government’s $1,000. On Wednesday, Trump announced on Truth Social that Sanjay Mehrotra, CEO of Micron Technology, would give $250 million.
Trump said the accounts and private donations will “jumpstart the American Dream for these fabulous children as we celebrate America’s 250th Anniversary!”
The Dells’ $6.25 billion donation will allow some children who are age 10 or under to receive $250 in seed money if their parents open an account. It’s only for kids who live in ZIP codes with a median family income of $150,000 or less who are too old to get the $1,000 from the Treasury.
Investor Brad Gerstner said he’ll donate $250 to Trump Accounts for every child under age 5 in Indiana.
How to sign up for Trump Accounts
Families can sign up at trumpaccounts.gov.
Original source: https://www.livenowfox.com/money
