Trump Accounts Launched for Newborns in the U.S.

A new government program is launching in the United States, under which special investment accounts will be opened for newborns. The program will be implemented in connection with the 250th anniversary of the USA and involves accumulating and investing funds for children.

By decision of the US government, individuals and companies will also be able to deposit funds or shares into the so-called "Trump accounts" created for newborns. The program officially launches on Saturday and is included in President Donald Trump's package of tax and immigration reforms.

According to the program, from 2025 to 2028, each child born will receive $1,000 USD as initial government capital. To open an account, a parent or guardian must complete a special form, Form 4547.

The parent or guardian will be responsible for managing the account. The US Department of the Treasury has already published five investment funds, which are based on leading Wall Street indices.

Over 6 million families have registered in the program so far. Government funding will be received by only 1.4 million children; however, other parents are also opening such accounts because the program provides for tax benefits.

Funds accumulated in the account will not be taxed until the child reaches 18 years of age. Compared to other similar programs, these accounts will have fewer restrictions on fund usage.

Source: Yahoo Finance