NEW YORK (AP) — Billionaires Michael and Susan Dell pledged $6.25 billion Tuesday to provide 25 million American children 10 and under an incentive to claim the new investment accounts for children created as part of President Donald Trump’s tax and spending legislation.
https://apnews.com/article/michael-dell-susan...0eeb4c41e1
The One Big Beautiful Bill Act (OBBBA) created a new tax-advantaged savings and investment account for children—called the Trump Account—that could give families a new way to save for their children's futures.
You could almost think of a Trump Account as a cross between a traditional individual retirement account (IRA) and a 529 savings account. In brief, these accounts will initially be eligible for after-tax contributions of up to $5,000 a year until the year the beneficiary reaches age 18. Like with an IRA, potential earnings can then grow tax-free and eligible withdrawals will generally be taxed at the beneficiary's income tax rate. However, withdrawals are generally prohibited until the beneficiary reaches age 18, at which point the account will need to be converted to an IRA.
Like with a 529, the beneficiary doesn't need to have earned income to accept contributions and nearly anyone can contribute to their account, but there's no requirement that the proceeds be used for education expenses—or any other purpose.
One of the more eye-catching features of Trump Accounts is that the OBBBA promises newborns born between Jan. 1, 2025, and Dec. 31, 2028, a federal grant of $1,000. We expect more details on how this will work in the coming months.
With that in mind, here's what we know about these accounts today.
When do Trump Accounts launch?
Trump Accounts will become available in 2026. However, the first contribution to the account can't be made until after July 4, 2026. At this time, it isn't clear who will open the account or where it will be held.
https://www.schwab.com/learn/story/trump-accounts
This is a BIG Deal ! ! ! Right know if a person starts a Retirement Account at 20 they will be a Millionaire or more by the time they reach 55-60 if they contribute $5000 every year till they reach 55- 60 .You can figure about 10% interest on the money a year over the lifetime of the Account of 55-60 years .
For every $10'000 invested the interest would be $1000 Dollars so every year $50'00 would be $5000 interest and so on.
If a Child held on to that Account from the age of One till they reached 55-60 years old >< Holly Smocks ! ! ! ! REAL BIG DEAL >< WOW
Lets See if YOU hear about this on the NEWS Ha Ha Ha news
https://apnews.com/article/michael-dell-susan...0eeb4c41e1
The One Big Beautiful Bill Act (OBBBA) created a new tax-advantaged savings and investment account for children—called the Trump Account—that could give families a new way to save for their children's futures.
You could almost think of a Trump Account as a cross between a traditional individual retirement account (IRA) and a 529 savings account. In brief, these accounts will initially be eligible for after-tax contributions of up to $5,000 a year until the year the beneficiary reaches age 18. Like with an IRA, potential earnings can then grow tax-free and eligible withdrawals will generally be taxed at the beneficiary's income tax rate. However, withdrawals are generally prohibited until the beneficiary reaches age 18, at which point the account will need to be converted to an IRA.
Like with a 529, the beneficiary doesn't need to have earned income to accept contributions and nearly anyone can contribute to their account, but there's no requirement that the proceeds be used for education expenses—or any other purpose.
One of the more eye-catching features of Trump Accounts is that the OBBBA promises newborns born between Jan. 1, 2025, and Dec. 31, 2028, a federal grant of $1,000. We expect more details on how this will work in the coming months.
With that in mind, here's what we know about these accounts today.
When do Trump Accounts launch?
Trump Accounts will become available in 2026. However, the first contribution to the account can't be made until after July 4, 2026. At this time, it isn't clear who will open the account or where it will be held.
https://www.schwab.com/learn/story/trump-accounts
This is a BIG Deal ! ! ! Right know if a person starts a Retirement Account at 20 they will be a Millionaire or more by the time they reach 55-60 if they contribute $5000 every year till they reach 55- 60 .You can figure about 10% interest on the money a year over the lifetime of the Account of 55-60 years .
For every $10'000 invested the interest would be $1000 Dollars so every year $50'00 would be $5000 interest and so on.
If a Child held on to that Account from the age of One till they reached 55-60 years old >< Holly Smocks ! ! ! ! REAL BIG DEAL >< WOW
Lets See if YOU hear about this on the NEWS Ha Ha Ha news
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