WASHINGTON —
The White House is launching Trump Accounts on July 4, a program that will provide $1,000 to babies born during President Donald Trump's second term, which will be invested in the stock market.
Parents can open an account for their children if they are born between Jan. 1, 2025, and Dec. 31, 2028. To qualify, the baby must be a U.S. citizen, have a Social Security number, and meet the birth date requirements.
Families can sign up for the accounts at TrumpAccounts.gov.
The Treasury Department plans to transfer the initial $1,000 to each account beginning tomorrow, to be invested in the stock market by private firms.
Parents, family members, friends, and employers can contribute up to $5,000 annually on an after-tax basis, though contributions from the government and charities will not count toward this limit.
Children can't access money in the account until they're 18 years old. Once they hit 18, they can use the funds for specific purposes, like paying for their education, buying a home, and starting a business.
The White House and even Florida Rep. Randy Fine have suggested that a child born today could accumulate approximately $243,000 in their account by age 55 without any additional contributions. Trump shared his thoughts on the program during an appearance on CNBC earlier this week.
"When that baby becomes a man or a woman, they can have hundreds of thousands of dollars, maybe more, but they can have hundreds of thousands of dollars because we're seeding it," Trump said.
Several investment calculators confirm that a Trump Account could reach around $243,000 by age 55. Our partners at PolitFact also point out that this projection assumes a 10% annual gain, which some experts note could vary based on market performance. If a more conservative annual return of 6.7% is used, the account could grow to $40,000 in 55 years.
