WASHINGTON, D.C. – On Wednesday President Donald Trump announced 70-million American children have been enrolled into his Trump Accounts. It’s an initiative the administration launched that is essentially starter individual retirement accounts.
“If all goes well, they’ll be quite rich by the time they’re 18,” said the President.
Beginning in October, the Treasury Department automatically enrolled 60-million kids under the age of 18 in the accounts in addition to the ten million whose parents opted into the accounts after the initial launch on July 4th. According to the administration, parents, guardians, and others can contribute up to five-thousand annually. Charitable groups, philanthropists, employers, governments and other relatives could also make deposits, which grow tax-deferred in an ultra-low cost stock index fund.
“A child born during the President’s term, Treasury will seed every child’s account with one-thousand dollars,” said Treasury Secretary Scott Bessent.
The program has been praised by members on both sides of the aisle. According to the administration, US companies and philanthropists have donated billions of dollars in contributions.
“We couldn’t be more excited about what this will become over time,” said Michael Dell, founder of Dell, Inc.
The administration said these accounts aim to boost future financial security for the next generation of Americans.
“It’s not just the money that matters, it does matter but knowing someone believes in you and your future that matters just as much,” said Susan Dell with the Michael and Susan Dell Foundation. “So for every child across the country, these accounts are for you because we believe in you. We want your dreams to be big because we want your dreams to come true.”
