President Trump announces plans for White House helipad
President Trump said construction is underway on a new White House helipad, paid for by Sikorsky and bearing the presidential seal.
The long-anticipated Trump account is officially live, promising to give American children and infants free money to start long-term savings.
At a ceremony in the Oval Office on July 6, President Donald Trump said a $1,000 account would make millions of American babies “very rich.”
Six million children already have active accounts, and children born between 2025 and 2028 will automatically receive a $1,000 deposit from the federal government.
Is the Trump Account, which operates as a type of IRA for children, better than other savings options for Georgia families? Here’s what you need to know.
How does the Trump account work?
The Trump account became active on July 4 and can now accept donations.
Parents or legal guardians can create an account by completing IRS Form 4547 online. This requires date of birth, social security number, and parent and child contact information.
You can also submit the form with your tax return, but it may take several months. You will then be contacted by the financial partner holding your Trump account (originally BNY) to complete the setup.
If an account is created for your baby, $1,000 will be credited to your account from the federal government. If your child is older, you can still create an account, but no additional government funds will be added. However, there are other funds your family may be eligible to receive.
According to WSB-TV, Michael Dell and Susan Dell of the Dell Foundation have pledged $6.25 billion to the effort, and the Dell Foundation estimates that 700,000 Atlanta households will be eligible to receive additional funding through this account.
Parents and guardians can contribute up to $5,000 per year after taxes. Employers can also make contributions for minor employees and dependents of adult employees.
The account has a growth period until the child turns 18, after which it becomes a traditional IRA with all standard IRA limits.
Are there other savings accounts for children in Georgia?
If your child is not eligible for the $1,000 deposit, the Trump Account does not necessarily offer other benefits compared to other traditional savings options.
For example, parents can already set up a traditional IRA for their children and set them up for future financial success. There is no minimum age for children as long as there is a parent or guardian on the account. The Trump account becomes a traditional IRA when the child turns 18, so it may be more beneficial for families to start there, especially if they haven’t received the $1,000 increase yet.
Families can also choose a 529 plan, which offers significant tax benefits for paying for their children’s education. You can roll over up to $35,000 from a 529 plan into a Roth IRA. This means that the money not used for education will still serve as a savings account for your child. These accounts do not have similar contribution limits, so unlike the Trump account, family members may contribute more than $5,000 annually to the account.
In the long run, brokerage accounts may outperform Trump accounts. Because these accounts are taxed at long-term capital gains rates that are lower than income taxes, a brokerage account that invests in mutual funds with low or no dividends can generate even more money by the time your child turns 18.
The Trump account is also geared toward a child’s retirement, but there are many costly steps in a person’s life before a working career ends. Families should also consider education accounts, saving for a home purchase, and even their own retirement when deciding whether to invest in a Trump account for their young children.
Families should consult a financial professional before making decisions for their children to find out whether a Trump account or a traditional savings option is the best choice.
Eileen Wright covers Georgia politics as an Atlanta Connect reporter for USA TODAY’s Deep South Connect team. X Find her at @IreneEWright or email her at ismith@usatodayco.com.
