Trump Accounts: New Savings Option for Kids
Update: 2025-12-09
Description
Michael and Susan Dell donated $6.25 billion to help 25 million American children start investment accounts, known as Trump accounts, which offer a $1,000 head start from the U.S. Treasury for every American baby born between 2025 and 2028. The Dell donation adds an extra $250 for eligible children under ten years old. However, financial advisors suggest that parents should not abandon their current savings strategies, as Trump accounts may not be the best fit for every familys long-term financial goals. These accounts function as tax-deferred savings accounts for children under eighteen, with a maximum annual contribution of $5,000. If left untouched, the account could grow to $2.2 million by age sixty. However, there are restrictions, and families should consider other options like five twenty-nine plans, custodial Roth IRAs, or UTMA/UGMA accounts.
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