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Improving Trump Accounts
CATO
2026.08.10
- Trump Accounts are new early-life investment accounts that include a $1,000 government-funded seed investment for Americans born between 2025 and 2028. The accounts also allow additional contributions from families, employers, and charitable organizations. Trump Accounts are the latest addition to a tax code that already includes more than a dozen similar qualified investment accounts, each with its own eligibility rules, contribution limits, and withdrawal restrictions.

- This policy analysis finds that Trump Accounts function primarily as a government welfare program rather than a tax-neutral investment vehicle. For most families, Trump Accounts are less tax-advantaged than existing alternatives and add considerable complexity to an already fragmented system, limiting participation. The analysis concludes by proposing reforms that build on the best features of Trump Accounts by adopting a Universal Savings Account structure and consolidating the remaining system into simpler, more flexible options that expand access and reduce complexity.