Trump Accounts (tax-free savings for kids) proposed
Key Questions
What is the Trump Account program?
The program provides a $1,000 government seed into tax-free savings accounts for children under 18, with growth usable for education, home purchases, or business starts. It requires IRS Form 4547 and has received endorsements from economists.
When will deposits occur for newborns?
Newborn deposits are set for July 5 after parents complete the required opt-in process. The program has already reported 5.5 million signups.
Are there scam risks or gift tax changes?
Officials warn there is no official app, increasing scam potential. A June 29 safe harbor allows gifts up to $5,000 per child without Form 709, though experts note it is not blanket relief as it distinguishes current versus future interest gifts.
$1,000 seed for kids under 18, tax-free growth. Form 4547. Safe harbor for gifts up to $5,000 per child without Form 709. 5.5M signups. Rollout delays reported.