Posted on 07/12/2026 4:49:39 AM PDT by MtnClimber
Yet another Trump innovation that will be paying off long after he leaves office.
The Fourth of July was not only a day to celebrate our country’s independence. It marks the date of a new kind of investment account for children of citizens who are under 18 and who have Social Security account numbers. The Trump Accounts (530A accounts) are a brilliant idea. Often compared to “starter IRA accounts,” the children are the owners of the accounts, which are to be managed by a responsible adult -- guardian or parent. Funds in these accounts must be conservatively invested in U.S. stock index funds. Fund fees must be low -- no more than 0.1%. Contributions are not deductible, but growth of the accounts is tax-deferred. Except for rare cases, like the death of the beneficiary, the funds cannot be withdrawn until the child reaches 18, at which point they are taxed as ordinary income at the child’s rate -- which normally will be small if the funds are withdrawn while young. Once the child reaches 18, the Trump account automatically converts to a standard traditional IRA or Roth IRA. Employers, charities, or family members can contribute with annual contributions for each account limited to $5,000. Even sweeter, employers can contribute up to $2,500 tax-free to accounts. Sweeter yet, for those children born between 2025 and 2028, there will be a federal contribution of $1,000 to start the account off.
To open one of these accounts, use IRS Form 4547 or use the online portal trumpaccounts.gov.
A number of private individuals and foundations, notably Michael and Susan Dell, have kicked in a lot to these accounts -- the Dells over $6 billion while SpaceX president Gwynne Shotwell and her husband contributed SpaceX stock valued at over $300 million.
(Excerpt) Read more at americanthinker.com ...
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A great move by President Trump. You would not see 0bama or Biden doing something like this.
UGMA (Uniform Gifts to Minors Act) accounts have been around for a long time and operate in a similar manner but give you more investment choices. They do not come with the $1000 taxpayer funding though.
Why is this called a “Trump account” if we are paying the money?
Or Bill Clinton for that matter.
After-tax money goes in, and money is taxed when it comes out. I don’t love that.
A parent or guardians obligation to children, Government should not be involved at all.
**Once the child reaches 18, the Trump account automatically converts to a standard traditional IRA or Roth IRA.**
It should be Roth-no ifs, ands, or buts. After tax money invested. Congress will have 18 years to work on it now that they are in effect.
The beauty of it: Everyone knows the democrats can’t handle this loss of power and influence. They can’t handle a small $1,000 gift. This is our long term plan.
Here’s another-remember when the democrats had their 60 seat senate majority and could have ‘solved’ the immigration to their 100% liking? The didn’t do it because they wanted the ‘issue’. Divide along racial lines.
We’ll have 18 years to bring up the Roth issue every 2 years with each new congress. Put them on defense. Two can play this game.
The father is obligated to pay for the child’s education only if there’s a divorce (maybe not always but I know of such a case). If they had stayed married he would not be obligated to pay.
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