A new app for parents managing Trump accounts for their children launches Thursday, Treasury Secretary Scott Bessent announced Wednesday.
Bessent made the announcement at a cabinet meeting Wednesday, saying the app would be available "on all major platforms tomorrow morning." He noted that nearly 6 million children already have accounts set up.
The app was created by Robinhood, the commission-free trading and investing platform, and the Bank of New York. Both were selected by the Treasury Department to manage Trump accounts in this initial phase.
Parents can use the app to view account balances and make investing decisions, among other things. Investment options will be limited to very low-cost, broad-based U.S. stock index funds and exchange-traded funds.
WHAT IS A TRUMP ACCOUNT?
Trump accounts are IRA-style savings accounts for children. Like traditional IRAs, money in the accounts grows tax deferred. But the rules differ when it comes to contributions, withdrawals and approved uses of the money. The money may not be tapped before a child turns 18.
Parents, employers, friends and other relatives may contribute a combined $5,000 a year into a child's account. Money from philanthropists, nonprofit charities or state governments earmarked for children in a "qualified class," such as those living in a given state, may also be contributed.
The federal government will contribute $1,000 into every account for children born between Jan. 1, 2025, and Dec. 31, 2028.
The accounts won't officially be open for investment until July 4. That is also when the Treasury Department will start depositing the $1,000 in federal seed money into eligible accounts. Since July 4 falls on a Saturday, the money may not appear in accounts until Monday, July 6. Until then, the Treasury spokesperson said, "the app features eight exclusive financial literacy modules that families can access now."
To qualify for a Trump account, a child must be under age 18 at the end of the year in which an account is opened. The child must also be a U.S. citizen and have a valid Social Security number.
To create a Trump account, parents or other authorized individuals, such as a legal guardian, can fill out Form 4547 and submit it to Treasury when filing taxes, or sign up at trumpaccounts.gov.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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