BBB’s “Trump Account” for children could generate up to $1.9 million, the Treasury said
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Exclusive: New Treasury forecasts show that if the “Trump Account” offered to American children is maximized and combined, it could grow into seven-figure nest eggs by adulthood.
The new savings program was pushed into one big beautiful bill and signed the law by the president Donald Trump On July 4th, the children will provide their first $1,000 government investment at birth.
How “big and beautiful bills” give American babies a financial head start
Parents and relatives can donate up to $5,000 a year to their child’s accounts until the child is 18 years old, and the cap may be potentially adjusted inflation After 2027. If the biggest contribution each year is made to a child up to 17 years of age’s birthday, the account could grow from $191,500 to $676,400 depending on investment performance.
According to the Treasury Tax Analysis, if left fully funded and untouched, the start of a newborn financial director could grow to up to $1.9 million by the age of 28. Even at the bottom edge of the predicted return, Save money Accounts could still bring close to $600,000 over the same period.
Small hands of a 2 month old baby girl in her mother’s hands while sleeping. (Getty Images/Tim Clayton via Getty Images/Corvis)
Even without additional contributions beyond the first $1,000 of the federal government depositthe Treasury estimates that accounts could grow from $3,000 to $13,800 over 18 years.
Families can open an account and receive a government investment of $1,000 for each child born between January 1, 2025 and December 31, 2028.
You need a Social Security number to open an account and you cannot withdraw funds until your child reaches the age of 18.