Trump Accounts Introduced with $1,000 Federal Contribution for Eligible Newborns
The Trump Accounts, a new savings initiative, have been introduced to help families save for their children's future. These accounts are similar to traditional IRAs, allowing money to grow tax-deferred. Eligible children, born between January 1, 2025, and December 31, 2028, can receive a one-time $1,000 contribution from the federal government. The accounts must be opened by a legal guardian or parent, and contributions can be made by employers, family, and friends, although only employers' contributions are tax-deductible. The funds must be invested in low-cost, diversified U.S. stock index funds or ETFs. Withdrawals are restricted until the child turns 18, and non-approved uses before age 59-1/2 incur a 10% penalty. 
