The Trump Administration and a number of investors are encouraging parents across the country to claim their children's free Trump Account,a new tax-advantaged investment account named for the 47th president.
But what exactly do the accounts do, and how do they make money?
For starters, some children already have $1,000 in seed funding sitting in their accounts, according to a release from the White House and more information on the Trump Accounts webpage.
Here's what you need to know.
Does my kid's Trump Account have money in it already?
According to the official Trump Account website, certain accounts already have $1,000 in seed funding.
Eligible children are those born between Jan. 1, 2025 and Dec. 31, 2028 with a valid Social Security number.
For other children, it doesn't appear that any initial
seed funding has been announced.
Who contributes to Trump Accounts? Is Trump Account free money?
Parents, friends and employers can contribute to a child's Trump Account, up to $5,000 per year.
Once a child is working age, they can also contribute to their account, but the funds won't be accessible to them until they turn 18.
While some eligible accounts will be seeded with $1,000 from the U.S. Treasury at time of claiming, it is unclear if all accounts have this benefit.
What is a tax-advantaged investment account?
Tax-advantaged investment accounts are common tools for saving and investing money toward things like retirement and education.
Kaitlyn McCormick is a Philadelphia-based reporter writing all things trending, breaking and city-related for USA TODAY's Philadelphia Metro Connect Team.
This article originally appeared on USA TODAY: Are Trump accounts real? Who pays for them?
