- The Trump Accounts app is available now on app stores in the US.
- The app's debut comes over a month before the account's official launch on July 4.
- Trump Accounts are available to all US children who have a Social Security numbe
The Treasury Department has announced the launch of the Trump Accounts app on app stores throughout the US.
The app's debut comes more than a month before the official launch of the new tax-deferred accounts on July 4, CNBC reported.
The Trump Account app was designed in partnership with Robinhood and Bank of New York Mellon, a Treasury Department spokeswoman told the outlet. As per the Treasury's latest tally, families have signed up almost six million children for the accounts.
What Are Trump Accounts?
Trump Accounts are available to all US children with a Social Security number. Babies born between 2025 and 2028 are eligible for an initial $1,000 deposit from the Treasury.
The accounts are Individual Retirement Account (IRA)-style savings accounts for children. They are like traditional IRAs in the sense that money in the accounts will increase tax deferred. But the rules are different when it comes to contributions, withdrawals and approved uses of the money, as per CNN. The money cannot be used before a child turns 18.
How To Use The Trump Account App
Also known as 530A accounts, Trump Accounts cannot be funded until July. Parents or guardians can open the account now by going to TrumpAccounts.gov and filling out IRS Form 4547.
For the initial app sign-up process, parents or guardians need to enter the email address they used for the account application and verify it with a code sent to that email ID. They need to add a phone number and undergo verification for that as well. Once the process is over, they will see a message on the screen asking them to wait for an invite.
“In the next few weeks, we'll send you an invite from no-reply@trumpaccounts.treasury.gov to activate your child's account. You can also turn on push notifications to get notified about account updates. Be sure to complete IRS Form 4547 if you haven't already,” the message reads.
Once the accounts are active, parents, guardians and others will be able to contribute up to $5,000 annually in after-tax dollars up until the year before the account holder turns 18.
Every year, employers can also give up to $2,500 per worker, as part of the $5,000 limit and the money won't count as taxable income. Additionally, qualifying charitable organisations and local and state governments may offer money that does not count toward the $5,000 limit.
Investment options will be limited to exchange-traded funds and very low-cost, broad-based US stock index funds.
