Trump Accounts Give the Next Generation a Jump Start on Saving

Summary:

The White House announced details of Trump Accounts, created under the One Big Beautiful Bill to help jump start savings for children. Eligible kids, born between Jan. 1, 2025 and Dec. 31, 2028, receive a $1,000 government deposit at account creation. Parents can contribute up to $5,000 per year, while employers may add up to $2,500 annually, excluded from taxable income. Projections from the Council of Economic Advisers suggest that a baby born in 2026 could amass over $303,800 by age 18 and $1.09 million by age 28 with maximum contributions — or reach $5,800 and $18,100 respectively with no additional contributions. The program aims to encourage early saving, investment, and wealth-building across families and employers.