WASHINGTON–It is “imperative that credit unions be included among those authorized providers” of the so-called “Trump Accounts” for newborns that were created by recent legislation, America’s Credit Unions told Treasury.
For children born on or between Jan. 1, 2025, and Dec. 31, 2028, the accounts provide an initial $1,000 government contribution to eligible newborns and allow annual contributions of up to $5,000 from family, friends, and employers. The funds must be invested in a qualified U.S. stock market index fund, and after age 18, the account follows many of the rules for individual retirement account.
Treasury is currently preparing guidance on the accounts.
Accounts Fit the ‘Mission’
In a letter to Treasury signed by Regulatory Advocacy Counsel Tyler J. Maron, America’s Credit Unions stated, “Credit unions’ ability to facilitate Trump Accounts fits squarely within their mission of helping members grow financially. As not-for-profit financial cooperatives, credit unions’ sole focus is on the well-being of their members and their families. These accounts represent a valuable tool and opportunity to build savings and secure the financial future of members’ children.”
The letter goes on to add, “As not-for-profit financial cooperatives, credit unions’ sole focus is on the well-being of their members and their families. These accounts represent a valuable tool and opportunity to build savings and secure the financial future of
members’ children. As the original consumer protectors, Credit unions are well-positioned to serve as trusted providers of Trump Accounts for their members given their experience managing specialized savings products…”
