One Big Beautiful Bill (OB3) Trump Accounts (new)

Applies to tax years 2026-2028.

The government contributes a seed amount of $1,000 to an account for each child born during the years of 2026-2028.  A person such as a parent or grandparent can establish the account for benefit of the child.

This is a type of IRA, where earnings grow tax deferred.  Contributions are limited to $5,000 per year and are not deductible.  Distributions are not allowed before age 18.  There are limitations on the types of investments that can be used to fund the account.  (I believe this means the types of investments that can be held in the account). 

Employers may make excludable contributions, limited to $2,500 to employes under age 18.  (I’m guessing this will apply once the children born in 2026-2028 begin working as teenagers).  This is a pilot program, so they will dial in the rules over the coming several years.  The federal government will have to figure this out, and determine which agency will manage the accounts.