"It's a new savings tool where money is invested in the stock market on behalf of a child. The child can't access the money until they turn 18 and can only use it for specific purposes, such as paying tuition, starting a business or making a down payment on a home. After a parent opens an account, the U.S. Treasury will contribute $1,000 for newborns."
"Private banks and brokerages will manage the money, which must be invested in U.S. equity index funds that track the stock market and charge the accounts no more than 0.10% in annual fees. Parents can contribute up to $2,500 annually in pretax income, much like they do for retirement accounts. Parents' employers, relatives, friends, local governments and philanthropic groups can also pitch in."
Trump Accounts provide a $1,000 Treasury contribution to every newborn when a parent opens an account, with funds invested in the stock market by private firms. Accounts must hold U.S. equity index funds with annual fees capped at 0.10%, and the child cannot access the funds until age 18. Withdrawals are allowed only for tuition, starting a business, or a home down payment. Parents may contribute up to $2,500 pretax annually, with a yearly contribution cap of $5,000; employer, family, government, and philanthropic contributions are permitted, and government and charity contributions do not count toward the cap.
Read at Fast Company
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