Trump Baby Accounts: Which Index Funds Qualify for Kids
The Treasury just clarified which low-cost index funds parents can use for 'Trump accounts.' Here's what you need to know.
The Treasury Department just dropped the answer parents and investors have been waiting for: which index funds are actually eligible for so-called 'Trump accounts,' the new savings vehicles aimed at building wealth for American kids from birth.
The rules are clear — money inside these accounts must go into low-cost index funds, not individual stocks, not actively managed funds, not crypto. Treasury has now specified which funds make the cut, giving families a concrete starting point for putting that initial government-seeded cash to work.
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This matters because index fund selection isn't trivial. A fund with a 0.03% expense ratio versus one charging 0.20% might sound like noise, but compounded over 18 years, that gap eats real money out of your kid's future nest egg. Knowing which funds qualify lets you shop for the cheapest option inside the approved universe — and that's exactly the move you should make.
For parents who've been sitting on the sidelines waiting for clarity, this is your green light. The account structure rewards patience and low costs, which is basically the entire playbook of index investing anyway. Get in early, pick the lowest-cost qualifying fund, and let compounding do its thing for nearly two decades.
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