April 6 (UPI) — The Department of the Treasury announced Monday that The Bank of New York Mellon Corporation will handle the Trump Accounts program and that Robinhood will be the brokerage and initial trustee.
BNY will manage the initial accounts and develop the Trump Accounts app.
“Together, these partners will support Treasury’s goal of ensuring every eligible child can access a Trump Account quickly and easily,” a press release from the Treasury said.
The accounts are tax-deferred investing accounts for children born between 2025 and 2028. They are scheduled to launch on July 4 with a $1,000 deposit from the Treasury.
BNY and other large employers have pledged to match the government’s deposits for children of their U.S. employees.
“We are honored to be selected as financial agent for Trump Accounts,” BNY CEO Robin Vince said in a statement. “In collaboration with Robinhood, a leading financial technology platform committed to democratizing the markets for investors, we are helping to expand access to financial opportunity for all Americans.”
The Treasury press release said the app is being developed as a custom, white-label product. The National Design Studio, along with Robinhood, is creating an intuitive user interface and user experience that allows “families to explore their Trump Accounts with confidence and ease.”
Vlad Tenev, chair and CEO of Robinhood Markets, said in a statement that the company is “proud to power Trump Accounts with Robinhood’s technology and to work alongside a historic and trusted institution like BNY.”
“Our task is clear: to provide the next generation of Americans with a world-class, intuitive platform to jumpstart their financial future,” Tenev said.
The IRS said that as of March 31, more than 4 million children were signed up for Trump accounts, and more than 1 million were eligible for the $1,000 pilot program.
“The IRS has been working closely with the Treasury Department to make the election process as simple and easy as possible by permitting taxpayers to fill out a one-page form when they file their tax return,” IRS Chief Executive Officer Frank J. Bisignano said in a statement. “Families with eligible children born between 2025 and 2028 just need to check the box on a form to stake their claim for the $1,000 contribution. It’s that simple.”
Parents can sign up for the funds by filing IRS Form 4547 with their tax returns or via TrumpAccounts.gov. There will be an authentication process in May, and the money will be in accounts on July 4, the IRS said.
Parents and others can contribute up to $5,000 a year. Companies can deposit up to $2,500 pre-tax per year for kids of employees, within the $5,000 limit.
“It’s good to see BNY and Robinhood being named, it gives us more clarity,” Madeline Brown, senior policy associate at the Urban Institute, told CNBC.
“There are certainly still questions that remain about what the interface and product will look like for account holders … and how financial planning and coaching may be integrated. Given that at least some participants will be new to long-term savings, there is this need for advisor-type guidance.”
