State Officials Promote New Federal Savings Plan For Kids

State Treasurer Larry Pack will be sending out a letter to newborn parents in West Virginia to encourage them to enroll their children in “Trump Accounts.”   

The new savings accounts are a custodial-style traditional Individual Retirement Account (IRA) owned by a child but administered by an adult.  

For every eligible American child born after January 1, 2025, through December 31, 2028, the federal government has pledged an initial deposit of $1,000 into each Trump Account.   

Certain qualifying families will also receive a $250 donation from Dell CEO Michael Dell. Michael and Susan Dell pledged to donate $6.25 billion to the initiative in December. 

Parents can make additional deposits of up to $5,000 per year. Up to $2,500 per year can come from each parent’s employer and will not count toward parents’ taxable income. Deposits cannot be withdrawn prior to the child turning 18 years old, after which the account would be treated as a traditional IRA and subject to the same withdrawal rules. 

In a press release, Pack said he was, “proud to support this pro-family initiative that will help strengthen millions of Americans.” 

“It is a great tool that is being offered by President Trump and our federal government to lift up the next generation, as well as allow them to get a headstart on their life. I hope West Virginia families will consider taking advantage of this opportunity for their children,” he said. 

The accounts are slated to be available July 4. 

Another requirement of the accounts is that deposits must be invested in stock mutual funds or exchange-traded funds mirroring the S&P 500 or another American stock index.  However, the New York Times reported earlier this week that the U.S. Treasury Department and White House officials have held internal conversations about allowing business donors to donate shares in their companies. 

“Trump Accounts” were created as part of the 2025 One Big Beautiful Bill, and stock donations would likely require an amendment. But critics are concerned that if passed, the change would allow the nation’s wealthiest to avoid capital gains taxes while receiving charitable credits.