Social Security is helping new parents open a Trump Account for their kids
Social Security has added another program to its lineup — but it’s for babies.The 91-year-old agency — most commonly known for its monthly benefit checks for retirees and those with disabilities — has announced a new initiative.The new program — called the Enumeration at Birth (EAB) program — will now be adding information about Trump Accounts to Social Security cards issued to newborns.In addition to the Social Security cards, parents will be given an insert offering instructions for claiming the child’s Trump Account through the app.Trump Accounts are for those born between January 1, 2025, and December 31, 2028, where kids score a one-time $1,000 contribution from the U.S.
Department of the Treasury.“Social Security is providing families with the tools to get started right away on this generational opportunity to build a strong financial foundation for their children’s future,” said Commissioner Frank J.Bisignano in a press release.“By including this information with Social Security cards issued through the Enumeration at Birth process, we are giving parents the tools to activate their child’s Trump Account and take full advantage of this wealth-building opportunity,” Bisignano added.To sign your child up for the accounts, parents must follow three steps:Trump Accounts are a tax-advantaged investment account for children.
Eligible kids can have one account where parents, guardians or other authorized individuals serve as the responsible party and account custodian.As of today, 70 million Trump Accounts are up for grabs, and 26 million have already received contributions, according to the administration.When children turn 18, the account turns into a retirement account — as their money will grow with them over decades.The traditional IRA, tax-advantaged investments are administered by a parent or guardian who can add up to $5,000 per year.
No withdrawals are allowed before 18, and withdrawals are subject to income tax.According to th...