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.

Details of the Program

Trump Accounts join existing tax-advantaged accounts, such as custodial Roth IRAs and 529 plans, each with its own rules, limitations, and benefits. While they 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.

More than 6 million Trump Accounts have been opened for children under age 18, with 1.4 million eligible for a $1,000 federal pilot contribution. The total number of accounts opened so far is still a fraction of the tens of millions of children under age 18 who may be eligible to have one.

Eligible investments must be mutual funds or exchange-traded funds that track either the S&P 500 stock index or any index that tracks the returns on equity investments primarily made in US companies. Annual fees may not exceed 0.1% of a child’s assets in the fund.

A default investment for all accounts will be the State Street SPDR Portfolio S&P 500 ETF (SPYM), which tracks the performance of the S&P 500. In the coming months, parents and guardians will be able to invest contributions in four other exchange-traded funds.

Accessing the Accounts

Parents and their kids can track investments in the account using an app created by Robinhood and the Bank of New York. The app can be downloaded from the Apple or Google stores or through TrumpAccounts.gov.

To open an account for an eligible child and apply for the $1,000 federal pilot contribution, parents must fill out Form 4547 and submit it to the IRS. To be eligible for the $1,000, 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: KRDO (Colorado Springs metro) — read the source article.