Last month, President Trump signed into law the One Big Beautiful Bill Act (Bill), which was approved by the Senate and House. The 870 page bill covers nearly every sector of the American economy and extends many of the taxpayer-friendly provisions of the Tax Cuts and Jobs Act (TCJA), passed in President Trump’s first term.
Although it is difficult to predict how this new Bill will impact on the economy long term, many clients, several of whom are grandparents, have asked about one part of the bill called the “The Trump Account”.
The Trump Account is an individual retirement account for minors and a pilot program where the government will contribute $1,000 to this account for each child with a valid Social Security number born between Dec. 1, 2025, and Dec. 31, 2028. The earnings grow tax deferred. Each year, the account may receive up to $5,000 in contributions increasing annually for inflation.
Account holders will be allowed to make partial withdrawals when they turn 18, with access to the full amount at age 25, but only for specific purposes, such as paying for higher education, taking a loan to start a small business and first-time home purchases. Full access to the funds will be age 30, to use for any purpose.
Whether these “Trump Accounts” will have any advantage to other savings plans remains to be seen, but this is another alternative, to begin a savings program for children and better manage their future.
Be Educated! Be Proactive!
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