10/23/2025
Starting in 2026, this is something that you want to be up to date on if you have a newborn in 2025 and beyond.
🍼 Did you know the new tax law creates a federally backed investment account—the “Trump Account”—for every American baby born between 2025 and 2028?
🤔 FAQs:
Q: When does this start?
A: The program launches in 2026, with funds accumulating tax-deferred until your child turns 18.
Q: What does a new baby get automatically?
A: Each eligible newborn receives a one-time government contribution of $1,000 to start the account.
Q: Can you contribute more than the $1,000?
A: Yes! Parents, relatives, employers, and others can contribute up to $5,000 per year per child. Starting in 2028, this amount adjusts for inflation.
Q: Where is the money invested?
A: Investment earnings grow tax-deferred. Money is invested in a diversified index of U.S. stocks for potential long-term growth.
Many details remain uncertain, such as who will administer the accounts, how to open them, and how parents will be notified.
đź’ˇ Bottom line: This is worth paying attention, but stay tuned as many operational details are still being finalized!
