A proposed Trump Savings Account would automatically open a $1,000 investment account for every child born 2024-2029, with parents able to contribute up to $5,000 yearly and companies like Nvidia offering matching funds. Half the balance unlocks at 18 for education or a home; full access comes at 30, though withdrawals are taxable unlike a Roth IRA.
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So Trump wants to give your baby $1,000 to invest, and they might actually be richer than you by the age of 18. But here's what they're not telling you. So it's part of a new tax plan called the Trump Savings Account, and it could go into effect retroactively from January 1st, 2024. So here's how it works. Every baby born between 2024 and 2029 would automatically get an investment account. So that money would get invested into index funds that grow with the stock market. Parents can add up to $5,000 per year post-tax, and companies like Nvidia, Uber, and Dell may actually match or contribute more to the account. So kids can access 50% of the money at age 18 for things like college, their job, job training, or even like their first home. But full access will kick in at the age of 30. But unlike a 529 plan or a Roth IRA, these accounts are taxable when the money is withdrawn. So while it's being sold as a wealth-building move, critics are basically saying that it could end up helping wealthy families even more because they can afford to contribute more year after year. So let me tell you what I did. As soon as I found out that I was expecting, I started investing for both of my daughters. I opened custodial brokerage accounts and minor Roth IRAs, and I have been investing consistently ever since. And you can do the same, and you do not need to wait for Congress or a new law to start building wealth. I'm hosting a free investing masterclass where I will show you exactly how to start investing for yourself and for your kids right now. So make sure that you comment now and I will DM you the link.
