How do trust accounts for newborns work?
Asked 5 hours ago
Answer
Trust accounts for newborns involve a $1,000 government deposit into a tax-deferred index fund for every child born between 2025 and 2028. Parents can contribute up to $5,000 yearly, with employer matches up to $2,500. Access is phased: half at age 18, full for specific uses at 25, and unrestricted at 30. Withdrawals are taxed as long-term capital gains.
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- Every child born between 2025 and 2028 will receive $1,000 in a tax-deferred index fund account.
- Parents can contribute up to $5,000 per year, with up to $2,500 matched by employers. 23s
- Eligibility requires U.S. citizenship and valid social security numbers for the child and at least one parent. 49s
- Funds can be accessed in stages: half at age 18, for specific uses at 25, and fully at 30; withdrawals are taxed. 1m 12s
- The government will open accounts if parents do not, but some program details remain undecided. 2m 17s