President Trump rang the opening bell at the New York Stock Exchange on Monday to mark the first trading day for newly established Trump accounts, a tax-deferred investment vehicle for children under 18. Also known as 530A accounts, they must be invested in low-cost U.S. stock index funds, currently limited to the State Street SPDR Portfolio S&P 500 ETF. The federal government is providing $1,000 in seed money to U.S. citizen children born between January 1, 2025 and December 31, 2028, with approximately 1.4 million of more than 6 million created accounts having claimed the funds so far. Contributions from parents, family, friends, and employers are allowed up to a $5,000 annual limit, and the account converts to a traditional IRA when the child turns 18. Philanthropic pledges include $6.25 billion from Michael and Susan Dell for children under 10 in lower-income areas and a $250 million commitment from Micron Technology for employees' children and those in select states.
State Street CorpState Street's SPDR S&P 500 ETF is the sole investment option for Trump accounts, potentially increasing demand for its fund.
Micron Technology IncMicron Technology pledged $250 million for Trump accounts, a financial commitment that may enhance its reputation and employee relations.
