Latest news with #TrumpAccount
Time of India
a day ago
- Business
- Time of India
Millions of Americans set to receive $1,000 direct deposits in bank accounts — see if you're on the payout list
Millions of Americans could receive a $1,000 direct deposit in their bank accounts as part of a brand-new government-backed program aimed at supporting the next generation and easing financial stress on families. Here's everything you need to know about this initiative, who qualifies, and how to make sure you're on the payout list. What is the new $1,000 direct deposit program? The U.S. government has introduced a 'Trump Account' (also referred to as a 'MAGA account'), which will provide $1,000 in seed money to millions of children born between January 1, 2025, and December 31, 2028. Explore courses from Top Institutes in Please select course: Select a Course Category Data Analytics Technology Data Science CXO Artificial Intelligence Healthcare Digital Marketing Data Science Operations Management PGDM Management Cybersecurity Design Thinking Degree Finance Others Leadership MBA Product Management others healthcare MCA Project Management Public Policy Skills you'll gain: Data Analysis & Visualization Predictive Analytics & Machine Learning Business Intelligence & Data-Driven Decision Making Analytics Strategy & Implementation Duration: 12 Weeks Indian School of Business Applied Business Analytics Starts on Jun 13, 2024 Get Details This account is designed to help American families build long-term savings for their children. The funds will be invested in the stock market and grow over time — similar to retirement accounts — with the goal of encouraging early financial stability. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An Phu Tay: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo Who is eligible for the $1,000 payout? To qualify for the Trump Account and receive the $1,000 government contribution, your child must meet the following criteria: Be born between January 1, 2025 and December 31, 2028 Be a U.S. citizen Have a valid Social Security number No income limits apply for this benefit — it's available to all eligible newborns , regardless of the parents' financial background. Live Events Can parents contribute to the Trump Account? Yes. Parents will be allowed to make after-tax contributions up to $5,000 per year until the child turns 18. Additionally, employers can contribute up to $2,500 annually, and that amount will not count as taxable income for the employee. This flexibility gives families an opportunity to grow their child's investment account significantly over time — potentially building a strong financial foundation by adulthood. What is the Trump Account? The Trump Account gives every U.S. child born from 2025 to 2028 a free $1,000 deposit to start a savings account. Parents can add up to $5,000 per year, and employers can contribute too. The money is invested and grows over time, with withdrawals allowed after age 18. How does it compare to Roth IRAs or 529 plans? Roth IRA : Great for retirement, but your child needs earned income to qualify. 529 Plan : Best for education savings, with tax-free growth and higher contribution limits. Trump Account : Easiest to start — no income needed, and it's automatic. Bottom line : The Trump Account is a strong start, but combining it with a Roth IRA or 529 plan gives you more options and tax benefits. What other payments are Americans receiving? In addition to the Trump Account for newborns, millions of Americans may also be eligible for stimulus payments ranging from $300 to $1,700 , with the average check hovering around $1,390 . These direct deposits are part of a broader government effort to ease the burden of inflation and support lower-income households. These stimulus payments are: Non-taxable Expected to arrive within days for those who qualify Delivered via direct deposit for most recipients Each state may have slightly different rules, so it's important to check with your local tax authority or the IRS for updated eligibility and payment dates. How to know if you're on the payout list? For the Trump Account: If you're expecting a child born in the 2025–2028 window, make sure they receive a Social Security number shortly after birth. No application is needed for the initial $1,000 — it will be automatically deposited once eligibility is confirmed. For the stimulus checks: Ensure your banking information is current with the IRS Double-check that your 2024 or 2025 income tax filings meet the qualifying income thresholds for federal relief payments When will the $1,000 direct deposits start? The rollout for the Trump Account is expected to begin mid-to-late 2025, following the birth of eligible children and confirmation of their documentation. Stimulus payments, on the other hand, are reportedly hitting accounts within days for those already qualified — some as soon as this month. What should families do now? If you're planning to have a child between 2025 and 2028, you won't need to apply for the $1,000 Trump Account deposit — just make sure your child is a U.S. citizen and has a Social Security number. For everyone else, monitor IRS updates and state announcements to track your eligibility for additional stimulus payments. This latest financial boost, whether through child investment accounts or stimulus relief , offers a critical opportunity to build long-term security and help ease short-term financial pressure. FAQs: 1. What is the $1,000 Trump Account and who gets it? The Trump Account is a new federal savings program giving $1,000 to every U.S. child born between 2025 and 2028 — no strings attached, just a Social Security number is needed. 2. How do I apply for the Trump Account $1,000 deposit? You don't need to apply. The $1,000 is automatically added once your child is born and has a Social Security number. 3. Can parents or employers add more money to the Trump Account? Yes, parents can contribute up to $5,000 per year, and employers can add $2,500 tax-free for the child — all before they turn 18. 4. Who is getting the new 2025 stimulus payments up to $1,700? The payments go to low- and middle-income Americans, based on 2024–2025 tax filings — most are sent through direct deposit. 5. When will the $1,000 deposits and stimulus checks arrive? The Trump Account deposits start mid-to-late 2025, while stimulus checks are already being sent within days if you're eligible.
Forbes
07-07-2025
- Business
- Forbes
$1,000 Baby Bonus Explained: Who Qualifies And How To Get It
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. President Donald Trump's new Big Beautiful Bill aims to set children up for financial success by offering a new savings account called the 'Trump Account.' The federal government will provide a $1,000 bonus for every U.S. citizen born in 2025 and through 2028. It's a one-time payment from the government automatically put into this special savings account for your baby. Think of it as a starter fund meant to grow over time, like a 529 plan , but with more ways you can use the money later. Children born after December 31, 2024, and before January 1, 2029,(as U.S. citizens with Social Security numbers) qualify. Some families may be automatically enrolled if the IRS creates an account on their child's behalf using tax records. If not, parents or guardians will need to apply to open a Trump Account to trigger the $1,000 government contribution. Up to $5,000 a year can be contributed to the account. Employer contributions have a separate $2,500 limit. Contributions from parents aren't tax-deductible, so don't expect a tax break for putting money in. The money grows tax-deferred . That means you don't owe taxes on any earnings while they are in the account. . That means you don't owe taxes on any earnings while they are in the account. Generally, withdrawals are permitted once the owner turns 18. Don't think of this as a quick payout—it's a jumpstart on a long-term savings tool. The earlier you add to it, the more it can grow with compounding. Use it alongside other savings plans, like a 529 or a custodial account, to give your kid a solid financial foundation. Since this program just started, some details might change as the government works out the logistics. Also, the bonus amount is universal, meaning there's no extra help if you're on a lower income, and it comes as part of a bigger bill that changes programs like Medicaid and SNAP. The Big Beautiful Bill's $1,000 baby bonus aims to encourage families to save early for their kids. It's not just free money, but a financial tool intended to help build wealth over time. Was this article helpful?
Mint
17-06-2025
- Business
- Mint
How the $1,000 ‘Trump Accounts' would compare to other savings plans
The Senate Finance Committee's version of the big tax-and-spending bill included the proposal for the Trump Accounts. There is a new type of investment account for children in the big tax-and-spending bill, but it has strings attached. These so-called Trump Accounts, which for the next few years would be automatically funded with $1,000, are part of the bill that the Senate Finance Committee introduced on Monday. Lawmakers put the provision in the version that passed in the House last month. The proposal continues to be discussed and refined in coordination with the Trump administration. The free $1,000 might be nice, but the accounts themselves offer fewer tax advantages and lower caps on contributions than 529 accounts. They also have more limited investment choices than custodial brokerage accounts. The accounts would launch in 2026 for any U.S. citizen under age 8. Children born between 2025 and 2028, would get the $1,000, provided both parents have work-eligible Social Security numbers. Parents and relatives could contribute up to $5,000 annually in after-tax dollars until the child turns 18, a limit that would increase annually with inflation. The funds must be invested in a diversified index fund tracking U.S. equities, with the Treasury Department overseeing the program and banks or other financial institutions managing administration. If parents don't open an account by the time they claim their child on a tax return, the Treasury will create one automatically. Withdrawals could begin at age 18, when account holders may access up to half their balance for higher education, job training, small-business expenses or a first-time home purchase. Qualified withdrawals are taxed as long-term capital gains. Use the money for anything else, and it is taxed as ordinary income, generally a higher tax rate than long-term capital gains, with a 10% penalty. At age 25, the full balance would become available for those same purposes. Trump Account funds must be used by age 31, or they are taxed as ordinary income. If a child receives the $1,000 seed at birth and no additional contributions are made, the balance could grow to roughly $3,380 by age 18, assuming a 7% annual return, says Catherine Valega, a Boston-area certified financial planner. If parents contribute the maximum $5,000 each year from birth through age 17, a total of 18 years, the account could reach about $170,000 under the same assumptions. Trump Accounts are like a mix of Roth IRAs, 529s and brokerage accounts, but with more strings attached. They are funded with after-tax dollars, like Roth IRAs. But investment gains are taxed at withdrawal—typically at capital-gains rates for qualified uses, or as ordinary income plus a penalty for everything else. They are designed primarily for specific uses, much like 529 plans. But because the investment options are restricted to equities, it could be harder to scale down the risk as a child gets closer to, say, using the money for college. 529s typically offer age-based portfolios that shift from stocks to bonds as children grow older. Custodial brokerage accounts offer more investment options, letting parents buy individual stocks, exchange-traded funds or other assets. Unlike 529 plans, Trump Account contributions wouldn't qualify for a state tax deduction, even in states that offer one for 529s. 'Flexibility is really important to young families," said Miklos Ringbauer, a financial adviser in California. 'If you think your child might not go to college or might delay buying a home, other savings vehicles are more adaptable." Parents can contribute up to $5,000 a year, but unlike with 529 plans, they can't front-load five years worth of contributions. With a 529, individuals can contribute up to $95,000, or $190,000 for married couples, this year without triggering the gift tax. Unlike 529s, Trump Accounts don't allow parents to transfer funds to another beneficiary if one child doesn't use the money. With a 529, parents can now roll up to $35,000 into a Roth IRA for the same beneficiary, as long as the 529 account has been open for at least 15 years and the beneficiary has earned income in the year of the rollover. The accounts were originally branded MAGA Accounts, short for 'money accounts for growth and advancement," but House Republicans later amended the bill, renaming them Trump Accounts. Financial planners say the political association could influence participation rates, especially among families skeptical of Trump or wary of government-managed investment programs. Even some Trump voters are uneasy about the branding. Stephen Kneubuehl, a 38-year-old tech entrepreneur in Denver who said he voted for Trump, supports the idea of early savings. He opened custodial investment accounts for his nieces and nephews at their first Christmas and plans to do the same for his own future children. But he takes issue with the Trump-branded name. 'It's not his money being given out," Kneubuehl said. 'It's the American people's money. I'd rather it have a more generic, optimistic name." Write to Dalvin Brown at
The Hill
12-06-2025
- Business
- The Hill
What a $1,000 baby bond buys, and why one and done isn't enough
A new federal proposal included in the administration's 'one, big, beautiful' bill would provide a one-time deposit of $1,000 to every child born between 2025 and 2028 through Trump Accounts — previously known as the Money Account for Growth and Advancement, or MAGA Accounts. While the name has changed, the underlying proposal remains the same. It's a welcome sign that lawmakers on both sides of the aisle continue to recognize the value of starting early when it comes to building financial security. There's longstanding bipartisan support for investing in children from birth. Back in 2006, then-Sen. Jeff Sessions (R-Ala.) introduced a Portable Lifelong Universal Savings Account — a PLUS Account — modeled after the federal thrift savings plan, with an initial $1,000 deposit and a $5,000 annual contribution limit. More recently, Sen. Cory Booker (D-N.J.) reintroduced the American Opportunity Accounts Act, commonly known as baby bonds, which would seed $1,000 into an account for every child born after Dec. 31, 2023. The most recent Trump Account draws from a proposal by Sen. Ted Cruz (R-Texas) and would invest that $1,000 in an index fund. It's been nearly two decades since that first proposal, and Congress is still circling the same starting number. Imagine how much stronger families could be today if, instead of restarting the conversation, we had built on it. There's broad recognition that raising a family has never been more expensive and that the rising cost of essentials is contributing to declining birth rates. Recent estimates show that families spend between $15,000 to $21,000 in a child's first year alone, covering diapers, formula, baby gear, and child care. These aren't optional extras, they're baseline costs of parenthood. Baby food and formula costs rose 8.7 percent from January 2023 to January 2024, outpacing overall inflation. Diapers remain a major strain on household budgets, with 1 in 3 struggling to afford them even before the pandemic, and 1 in 4 now reporting they've had to miss work or school due to diaper needs. Child care is another overwhelming expense. In nearly every state, the cost of full-time infant care exceeds $14,000 a year, which is more than 10 percent of median household income. KPMG estimates that the cost of daycare and preschool has surged by 263 percent since 1990. On top of that, tariffs could raise prices on cribs, car seats and strollers by as much as 128 percent, according to S&P Global. These are basic safety items, not luxury goods, and they're increasingly out of reach. None of these costs can be meaningfully addressed by a one-time Trump Account, or by baby bonds or PLUS Accounts alone, but they shape the reality into which these proposals are introduced. Families grappling with steep costs today are far less likely to contribute to long-term savings accounts, even with a $1,000 head start. That's why policies like the Trump Account must be viewed not as stand-alone solutions, but as part of a comprehensive strategy to help families meet today's demands while planning for tomorrow's opportunities. The Trump Account would represent a step forward in how the government invests in family and long-term financial stability. It shares a key idea with prior proposals: the earlier the investment, the greater the return. There are, however, important differences in design. Baby bonds were proposed as government-funded accounts invested in a bond with an anticipated 3 percent annual return, receiving ongoing contributions, especially for children from households with limited financial resources, and these distinctions are a constructive differentiator. The Trump Account, by comparison, offers a one-time government deposit to be invested in an index fund, which has the potential for a higher rate of annual return, and because it is tied to the stock market, also carries additional risk. As a one-time deposit, it is not yet a full solution because it lacks the consistent annual investment to make its potential a meaningful tool for financial growth for children who are born into families without wealth. This ongoing investment matters. With inflation driving up prices and wages failing to keep pace, families need more than symbolic gestures. They need tools that build over time and bridge the gap between short-term help and long-term financial security. This is not just about individual families. It's about national economic potential. The Institute for Women's Policy Research estimates that if women participated in the workforce at the same rate as men, it could add $4.3 trillion to the U.S. economy this year. But that participation depends on the affordability of child care, baby essentials and family stability, areas where rising costs continue to hold parents back. The Trump Account reflects growing awareness that financial opportunity begins at birth. But if we're serious about building economic resilience, we must ensure that early investments are designed to grow and to last. Ongoing investment, like in the baby bonds and PLUS Account proposals, offers a path forward that is practical, scalable and rooted in research. If we want to give every child a real chance at economic mobility, it's not just about when and where we invest. It's about how we follow through. Marisa Calderon is the president and CEO of Prosperity Now.
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Business Standard
10-06-2025
- Business
- Business Standard
Trump pitches 'Trump Accounts' to CEOs to fund newborn investment plan
US President Donald Trump hosted a roundtable with a group of leading CEOs on Monday at the White House to promote his flagship investment initiative for American newborns. The scheme, titled the 'Trump Account', proposes a $1,000 government-backed deposit for every US-born child and is part of Trump's sweeping legislative proposal, the 'One Big Beautiful Bill'. Although the bill has cleared the House of Commons, it faces significant hurdles in the Senate, particularly after high-profile criticism from Tesla owner Elon Musk, who until recently was a key advisor to Trump. CEOs voice cautious support The roundtable was attended by more than half a dozen prominent corporate leaders, including Michael Dell, founder and CEO of Dell Technologies; Dara Khosrowshahi, CEO of Uber; David Solomon, chairman and CEO of Goldman Sachs; and Vladimir Tenev, co-founder and CEO of Robinhood. While none of the attendees committed specific funding amounts, Dell announced that his company would match the government's $1,000 contribution for children of its employees. Describing the move as 'a simple yet powerful way to transform lives,' Dell told Business Insider, 'The creation of investment accounts for every child will compound into substantial nest eggs providing support for education, home ownership, and starting families.' Goldman Sachs CEO David Solomon echoed the sentiment, saying, 'Our economy's future vitality is dependent on young people understanding the power of investing for the long term.' Uber's Dara Khosrowshahi added that the initiative could act as a launchpad for future generations. 'It puts the unstoppable engine of compounding to work for our kids, building a future for them from day one.' What is the 'Trump Account'? Formerly referred to as 'Money Accounts for Growth and Advancement' or 'MAGA Accounts', the 'Trump Account' is central to the broader 'One Big Beautiful Bill' spending plan. It proposes a $1,000 deposit for every child born in the US between January 1, 2025 and December 31, 2028. Parents, religious institutions, and private donors will be allowed to contribute up to $5,000 annually to these accounts. Half of the funds can be withdrawn when the child turns 18, with full access available at age 30. Withdrawals are restricted to specific expenditures, such as education, down payments on homes, or small business investments. Unapproved uses would trigger financial penalties. Calling it 'a pro-family initiative', Trump said the programme is designed to 'help millions of Americans harness the strength of our economy to lift up the next generation'. Political and legislative hurdles Despite the enthusiastic reception from some business leaders, the bill's progress has been anything but smooth. Its passage in the House was marred by partisan disagreement, and the proposal now faces tough scrutiny in the Senate. Elon Musk's public disapproval of the initiative as 'economic fantasy' has also added pressure to the administration's efforts to gain wider industry and political support. Nonetheless, the Trump administration is betting on private sector buy-in to bolster the credibility and feasibility of the plan, portraying the investment accounts as a tool for financial literacy and long-term economic empowerment.
