The One Big Beautiful Bill allows for the establishment of Trump accounts for U.S. citizens born between 2025 and 2028, featuring a one-time federal contribution of $1,000. Parents can contribute an additional $5,000 annually with employers contributing up to $2,500. The funds must be invested in low-cost stock mutual funds or ETFs. The potential benefits include long-term financial security for families and reduced reliance on government support.
"It can help Americans build financial security earlier and more confidently and, over time, ease the pressure on both the safety net and the federal budget," Russell Investments Chairman and CEO Zach Buchwald wrote in the Washington Post on Thursday.
"The ability for employers to make contributions, which wouldn't count as taxable income, is key because it can allow the accounts to grow significantly, even with modest sums from families, he added."
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