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Sat, 11 Jul 2026

Sat, 11 Jul 2026 Will Trump Accounts deliver for American children?

The White House has hailed the project as giving new generations a stake in the American dream, but the scheme has its critics.
The Trump Accounts savings scheme has been launched with an historic ringing of the Wall Street opening bell, but its success is uncertain.
* Available nationwide, the accounts can be created for US children under 18 with a valid social security number.
* Parents can contribute up to $5,000 per year per child, who can access funds at age 18 tax-free.
* The money must be invested in a low-cost index fund and withdrawals are subject to taxes and possible penalties. Tax experts have expressed concerns:
* The scheme is too complicated for lower-income families to sign up and use effectively.
* Penalties for early withdrawal may deter some from using the accounts for emergencies.
* Existing savings schemes, such as IRAs and 529 plans, may be more beneficial for many families. The White House claims Trump Accounts will give millions of children a way into stock ownership, but critics say only a minority will benefit.
* So far, about half a million accounts have received the $1,000 starting subsidy.
* Families have contributed nearly $125 million to Trump Accounts so far.
* The scheme estimates the starting pot could rise to $6,000 by age 18 without further contributions.