05/22/2025
Trump accounts for kids
The package would create a new “money account for growth and advancement,” or MAGA account – which House lawmakers renamed “Trump accounts.” The federal government would provide a one-time $1,000 credit to the accounts of children born from 2025 through 2028 who are US citizens at birth.
The annual contribution limit to the tax-preferred accounts would be $5,000, and money could not be withdrawn before the beneficiary turns 18. After that, the funds could be used for higher education or a first-time home purchase, among other purposes, and taxed at capital gains rates. After a beneficiary turns 31, the account would cease to be a Trump account.
Lets do the math.....................
If a child born today starts a Trump account and the parents contribute $5,000 annually, with an average economic growth rate of 7%, the future value of the account after 31 years would be approximately $510,365.21.
This calculation assumes consistent annual contributions and a steady growth rate over the entire period. It's a great way to build a substantial financial foundation for the child's future!
