Overview
- Families with babies born from 2025 through 2028 can receive a one-time $1,000 government deposit by applying at TrumpAccounts.gov.
- Annual contributions can total up to $5,000 per child from families and employers, with employers permitted to contribute up to $2,500 that counts toward that limit.
- States, local governments, and 501(c)(3) charities may add targeted supplemental funds that do not count against the $5,000 cap, according to program explanations.
- Withdrawals for higher education and a first-time home purchase are penalty-free but generally taxable, and the account operates like a retirement IRA after the child turns 18.
- Advisers caution that withdrawals between ages 19 and 24 can trigger the Kiddie Tax, suggesting 529 plans for education, while projections indicate balances could grow substantially with steady employer matches depending on investment performance.