Treasury Department reports 7 million have been enrolled in new ‘Trump Accounts.’
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The Department of the Treasury reports that 7 million children have been enrolled in the new child retirement accounts referred to as "Trump Accounts.” An estimated 1.7 million are for children born between 2025 and 2028 who qualify for a grant of $1,000 from the federal government. Since the child accounts were launched on July 4, over $1.5 billion has been deposited in them. Parents and certain other individuals and entities may also make contributions of up to $5,000 per year. Trump Accounts are available to any child under 18 who has a Social Security number.
The $1,000 contribution by the federal government is similar to an income tax refund. Treasury states that it is taking a few days for the amount to be deposited in the account of each qualified child.
A Trump Account may be created by individuals who have an IRS online account. If you do not have one, you must create an account with ID.me, a method the federal government uses to verify identity. This account requires a video verification with a representative of ID.me, after which it is established and you can activate the child retirement account.
Both the New York Stock Exchange (NYSE) and NASDAQ officially launched the accounts on July 6. NYSE Chair Jeffrey Sprecher stated that "capitalism and the ability to participate in this country is the best thing that we can give to the next generation."
The federal government announced on July 2 that it is open to "large philanthropic contributions of readily tradable public company stock to support Trump Accounts." While they allow funding by qualified exempt nonprofits, individual donors are also providing generous amounts to children, and some are funding additional contributions for children in specific states.
The website for the accounts also includes basic information and tutorials on investing for children and parents; it is anticipated that the combination of the accounts and tutorials will enhance the financial literacy of the next generation.
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