In short
The One Big Beautiful Bill Act creates Trump accounts, savings accounts for children under 18 that work like individual retirement accounts. Contributions of up to $5,000 a year can be made starting July 4, 2026.
Key takeaways
- The federal government deposits $1,000 for eligible United States citizen children born from 2025 through 2028.
- Employers can contribute up to $2,500 a year tax-free, counting toward the $5,000 limit.
- Withdrawals generally aren't allowed before the year the child turns 18.
Where it's tested
TCP: Personal Financial Planning — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An employee receives disability benefits under a policy for which the employer paid all premiums and excluded them from the employee's taxable wages. How are the benefits taxed?