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The Treasury Department announced Monday that Bank of New York Mellon will serve as the designated financial agent for Trump Accounts, the tax-deferred children’s investing program set to launch on July 4 with a $1,000 seed deposit from the federal government for kids born between 2025 and 2028. America’s children are getting a brokerage account whether they asked for one or not.
BNY is partnering with Robinhood to build the app that will house these accounts, which means the next generation of American investors will begin their financial lives on a platform whose previous cultural moment involved making options trading feel like Candy Crush during a pandemic lockdown. Robinhood CEO Vlad Tenev called this an opportunity to give American kids “a world-class, intuitive platform to jumpstart their financial future,” a sentence that could also be the tagline for literally any fintech startup that has ever existed, including several that no longer do.
BNY CEO Robin Vince said his firm is “honored” by the selection, which is the word you use when you want to sound humble about something you very much lobbied for. Several large employers have pledged to match the Treasury’s $1,000 seed money for their workers’ kids. Philanthropists in multiple states are seeding accounts for qualifying families. More than 4 million children are already enrolled, per the IRS, and over a million are eligible for the pilot contribution.
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The mechanics: parents file IRS Form 4547 with their 2025 returns or through TrumpAccounts.gov, survive an “authentication process” arriving in May, and the thousand dollars lands on the Fourth of July. Annual contributions cap at $5,000 in after-tax dollars, with employers allowed to chip in $2,500 pretax. The limit indexes for inflation after 2027, because even the government understands that $5,000 is going to feel quaint eventually.
Somewhere a child born this year will turn 18 with a brokerage account, a Robinhood notification, and absolutely no memory of any of this.
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