WASHINGTON (dpa-AFX) - The U.S. Department of the Treasury has announced that Bank of New York Mellon will be the financial agent for Trump accounts, a new tax advantaged savings initiative for kids set to kick off on July 4.
These accounts will offer a one-time deposit of $1,000 funded by the government for children born between 2025 and 2028. Parents, guardians, and other contributors can add up to $5,000 each year after taxes, while employers can chip in a maximum of $2,500 annually for their employees' kids within that total limit.
Robinhood Markets is teaming up with BNY to develop the digital platform that will handle account management, though the app hasn't been launched yet. Treasury officials mentioned that enrollment will be available through IRS Form 4547 or via the federal website starting in May.
Robin Vince expressed that the bank is proud to oversee these accounts, and Vlad Tenev pointed out that their tech partnership aims to help younger Americans start building their financial futures.
According to the IRS, over 4 million kids are already registered, with more than 1 million eligible for that initial Treasury deposit.
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