Blog

New Federal Pilot Program – The “Trump Account”

New Federal Pilot Program – The “Trump Account”

The OBBBA has introduced a new program that will provide financial support for children born between 2025–2028. Details are as follows:

✅ $1,000 Initial Contribution – The federal government will automatically open a “Trump Account” and deposit $1,000 for each eligible child.

👶 Eligibility – Children born in the U.S. between Jan. 1, 2025 and Dec. 31, 2028, with SSNs. Both parents must also have SSNs.

🎯 Purpose – These accounts are designed to help young adults save for the future: college, a first home, or even starting a business.

💵 Additional Contributions – Parents, grandparents, or others can contribute up to $5,000 annually (after-tax). Funds will be invested in a low-cost U.S. stock index fund.

🏦 Withdrawals – Allowed from age 18 for qualified expenses, taxed at long-term capital gains rates. Early, non-qualified withdrawals face penalties and ordinary income tax. At age 30, full access is granted without restriction.