Back to Markets
Crypto▲ Bullish
Trump Accounts: Newborn $1K Savings Program Faces Policy Risk
Trump Accounts seed $1k for newborns, invested in equities, with potential crypto inclusion. Political risk looms as future Congress could modify or sunset the program.
Continue with
The US Treasury will deposit $1,000 into a new savings account for every child born between January 2025 and December 2028. The money goes into domestic index funds and ETFs. The accounts, branded Trump Accounts, are structured like tax-deferred junior IRAs. Parents manage them custodially. At age 18, the holder can use the funds for education and homeownership. Growth is tax-deferred until withdrawal.
Family members and employers can contribute up to roughly $5,000 a year. Employer contributions are capped at $2,500. These payments are not deductible for the giver. The Council of Economic Advisers projects that if families max out contributions and markets perform historically, balances could reach hundreds of thousands of dollars. Some model runs show totals above $1 million by adulthood. A separate provision requires withdrawal by age 31.
President Trump has said he is open to adding cryptocurrency to the eligible investments, a move that would integrate crypto market analysis into a government-backed savings vehicle. No concrete plans exist. The program currently limits investments to traditional equities.