The Economic Times

What are Trump Accounts? How the new investment idea could affect low-income families

Trump Accounts are tax-advantaged savings accounts for children under 18, established under the One Big Beautiful Bill Act. They launch for contributions on July 4, 2026, with the government providing a one-time $1,000 deposit for newborns from 2025 to 2028. Managed by the Treasury, these aby bonds grow tax-deferred in low-fee U.S. index funds. With a $5,000 annual contribution limit and $2,500 tax-free employer matches, they aim to turn newborns into lifelong investors.