A child born in America will get 100 dollars, or 85 thousand rupees. US President Donald Trump has mentioned this in the new tax bill. The US House Republicans have also made a big change in their tax bill. They have changed the name of the ‘MAGA Account’ to the Trump Account. This account will deposit one thousand dollars of the child’s income.
Last week, the US government announced the ‘Wealth Creation Program’. This program was for children born while Trump was President. The government wanted to create a money account for the advancement of the children. This was called the ‘MAGA Account’. Now, it has been changed to the Trump Account.
Who Is Eligible For Trump Account
Children can use this scheme for education, to make a down payment on a house, or to start a small business. The House Republicans have also passed this bill, but there may be opposition in the Senate. A Trump account can be very beneficial for those who want to save. The special thing about this is that there is no tax on the money in this account.
But when you withdraw the money, you will have to pay tax, but at a lower rate. In this scheme, children born in America will be eligible between January 1, 2025, and January 1, 2029. The government will deposit money in their name. When they grow up, they can use this money.
When Will The Children Be Able To Withdraw Money?
According to media reports, they can buy a house with this money and pay their college fees. However, the child and the parents should have a Social Security number. Without this, they will not be able to join this scheme. The US Treasury will create and fund this account. Apart from the parents, other people can deposit up to $5,000 yearly into it.
The government will deposit $1,000 in every child’s account. At 18, children can withdraw up to 50 percent of the money from the account. At the same time, they can cancel the entire amount for those 25 to 30 years old. But they can only use this money for specific work. After 30 years, children can use this money for any purpose.
