President Donald Trump rang the opening bell for Nasdaq and the New York Stock Exchange from the Oval Office on Monday to mark the first day of trading for Trump Accounts, a new savings and investment vehicle for children. The program, which became law a year ago, aims to provide an avenue for families to invest in their children’s futures.

Key Features of Trump Accounts

Trump Accounts join existing tax-advantaged accounts, such as custodial Roth IRAs and 529 plans, each with its own rules, limitations, and benefits. While Trump Accounts do not simplify the complexity for families deciding which accounts best suit their needs and means, they have raised awareness of the value of investing in US children from birth. The program provides federal seed money for newborns and allows third parties to contribute to a child’s future.

According to the Treasury Department, more than 6 million Trump Accounts have been opened for children under age 18, with 1.4 million eligible to receive a $1,000 federal pilot contribution. Eligible investments must be mutual funds or exchange-traded funds that track the S&P 500 stock index or other indices that track returns on equity investments primarily made in US companies, with annual fees capped at 0.1% of a child’s assets in the fund.

Parents and guardians can track investments in the account using an app created by Robinhood and the Bank of New York, which were selected by the Treasury to manage Trump Accounts in their initial phase. To be eligible for the $1,000 federal pilot contribution, a child must be a US citizen with a valid Social Security number and born between January 1, 2025, and December 31, 2028.

Original reporting: KTVZ (Central Oregon) — read the source article.