Trump Accounts (tax-free savings for kids) proposed
Key Questions
What is the government seed amount for Trump Accounts?
Each eligible child under 18 receives a $1,000 government contribution. The accounts allow tax-free growth for qualified uses such as education, home purchase, or starting a business.
Is there a safe harbor for gift tax reporting on contributions to Trump Accounts?
IRS guidance provides a safe harbor for gifts up to $5,000 per child without requiring Form 709. The relief distinguishes current from future interest gifts but is not blanket protection.
How many people have signed up for Trump Accounts so far?
Approximately 5.5 million accounts have been opened. July 5 is the scheduled deposit date for newborns, and participants must opt in; no official app exists.
Treasury Secretary Bessent promotes $1,000 government seed for children under 18, tax-free growth for education/home/business. Uses IRS Form 4547. July 5 deposit date for newborns, opt-in required. New safe harbor for gifts up to $5,000 per child without filing Form 709 (June 29 guidance). Expert analysis: safe harbor distinguishes current vs. future interest gifts, but is not blanket relief. Economists endorse program. 5.5M signups reported. Scam warnings: no official app.