On Thursday, a new app designed for Trump Accounts will become available, offering parents a tool to manage savings accounts set up for their children. Announced by Treasury Secretary Scott Bessent, the app will be accessible on major platforms, including Apple and Google app stores.

Trump Accounts Overview

Trump Accounts are IRA-style savings accounts specifically for children, allowing money to grow tax-deferred. Unlike traditional IRAs, these accounts have unique rules regarding contributions, withdrawals, and the approved uses of funds. Importantly, the funds cannot be accessed until the child turns 18.

Parents, along with employers, friends, or relatives, can contribute up to $5,000 annually to a child’s account. Additionally, the federal government will contribute $1,000 to accounts for children born between January 1, 2025, and December 31, 2028. Contributions from philanthropists, nonprofit charities, or state governments for children in a ‘qualified class’ are also permitted.

App Features and Launch Details

The app, developed by Robinhood and the Bank of New York, allows parents to view account balances and make investment decisions. Investment options are limited to low-cost, broad-based US stock index funds and exchange-traded funds. Although the accounts will not be open for investment until July 4, families can currently access eight financial literacy modules through the app.

To establish a Trump Account, parents or authorized individuals must fill out Form 4547 and submit it to the Treasury Department when filing taxes or sign up at trumpaccounts.gov. The Treasury Department plans to deposit the $1,000 federal seed money into eligible accounts starting July 4, although due to the holiday falling on a Saturday, funds may appear on Monday, July 6.

Original reporting: El Paso News (HLL/CB) — read the source article.