The "Trump Accounts for Kids" program, which provides a $1,000 seed contribution for eligible children, has officially launched, offering American families a new savings initiative.
To qualify for the one-time government contribution, children must be U.S. citizens born between January 1, 2025, and December 31, 2028. This period aligns with former President Trump's second term in office.
Parents or guardians can establish a Trump Account for eligible children by submitting IRS Form 4547. This form can be accessed through the dedicated Trump Accounts app, during tax filing, or via the IRS website's Individual Online Accounts portal.
While the government provides an initial $1,000 seed contribution, the program allows for a maximum overall contribution of $5,000 annually to each account. These contributions can come from parents, other family members, friends, and the employers of parents or guardians.
Most contributions to the accounts are subject to taxes. However, employers can contribute up to $2,500 per employee annually on a tax-free basis, not per child. State and local governments are also permitted to make tax-free contributions.
Several major companies, including Goldman Sachs, BlackRock, and Nasdaq, have committed to matching the federal seed contribution of $1,000 for eligible children of their employees. This corporate matching aims to further bolster the savings for participating families.
The initiative is designed to encourage early savings and investment for children, with further details available for parents and guardians seeking to benefit from the program.