"When the children of wealthy households leave the nest, they often benefit from their parents' largesse in the form of a trust fund. Less affluent peers may receive nothing at all or even be expected to support their families when they become adults. But what if all children, regardless of their family's circumstances, could get a financial boost when they turn 18?"
"That's the idea behind Trump Accounts, a lesser-known provision of President Donald Trump's tax legislation. The bill, signed into law earlier this year, gives $1,000 to every newborn, so long as their parents open an account. That money is invested in the stock market by private firms, and the child can access the funds when they turn 18. Backers say it's a way to bolster capitalism and help children from low-income households build wealth at a time when openly socialist candidates are growing more popular."
"Thanks to a historic donation announced Tuesday by billionaires Michael and Susan Dell, some children 10 and under could receive $250 in seed money if their parents open an account. That money is reserved for kids who live in ZIP codes with a median family income of $150,000 or less and who won't get the $1,000 seed money from the Treasury."
Trump Accounts provide a $1,000 seed contribution to every newborn whose parents open an account, with the money invested in the stock market by private firms and available at age 18. Parents of older children can open accounts but do not receive the $1,000 bonus. Account funds may be used for tuition, starting a business, or making a down payment on a home. The $1,000 bonus applies only to babies born during the calendar years of the Trump administration. A donation from Michael and Susan Dell adds $250 for eligible children 10 and under in lower‑median‑income ZIP codes.
Read at www.mercurynews.com
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