Question

What is a Trump Account and how does it work?

Answer

A Trump Account is a tax-deferred investment account for children under 18, similar to a traditional IRA. Parents, grandparents, and others can contribute up to $5,000 per year, and children born 2025 through 2028 may qualify for a one-time $1,000 government contribution. Funds are invested in low-cost U.S. stock index funds and generally cannot be withdrawn before the child turns 18, at which point the account converts to a traditional IRA.

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