Summary
The Treasury Department announced details about the Trump Accounts program, which is a tax-deferred investment option benefiting eligible children with a $1,000 government contribution. Parents can sign up for this program while filing taxes using a new IRS form, and the invested money will focus on U.S. stock indexes. The program is open to families of all income levels with qualifying children, allowing additional private contributions each year.
Key Facts
- The Trump Accounts program offers a $1,000 government contribution for eligible children.
- Parents enroll in the program using a new IRS form, Form 4547, when filing taxes.
- Financial institutions will open and manage the accounts for participants.
- The investment options must be low-fee and tied mainly to U.S. stock indexes.
- Families can add extra private contributions to the accounts each year.
- The program was created under President Donald Trump’s tax and spending law.
- Households of any income level with qualifying children can participate in the program.
