The US Treasury recently held an event to celebrate the forthcoming launch of “Trump Accounts,” which are slated to roll out on July 5. A provision in the Republican tax and spending bill that was enacted last year calls on the Treasury to give savings accounts to every US baby born between Jan. 1, 2025 and Dec. 31, 2028, seeded with $1,000 from the federal government. While the Treasury-run pilot program will automatically open up Trump Accounts for babies born during Trump’s second term, parents can open an account on behalf of any child under the age of 18. Parents and employers can contribute up to $5,000 a year to these accounts, $2,500 of which is not taxed. Once Trump account holders turn 18, the savings vehicle will take the form of an individual retirement account. A number of large employers have already committed to making Trump account contributions on behalf of their workers’ children, though the Treasury is still ironing out regulatory details about the plans. For more on the companies that have committed to make Trump account contributions, keep reading here.—CV |