Trump Accounts to launch without rollover option: report

[President Trump Participates In Invest America Roundtable At The White House]
Win McNamee/Getty Images News

The Trump administration is expected to roll out Trump Accounts next week without allowing firms to host the children's savings accounts on their own platforms, _Semafor _reported, citing people familiar with the discussions.

Companies including Chime (CHYM [https://seekingalpha.com/symbol/CHYM]), Empower, Fidelity, and SoFi (SOFI [https://seekingalpha.com/symbol/SOFI]) had hoped to receive approval to roll over the accounts from the Treasury Department's app, developed in partnership with Bank of New York Mellon (BNY [https://seekingalpha.com/symbol/BNY]) and Robinhood (HOOD [https://seekingalpha.com/symbol/HOOD])—in time for the program's launch.

Those firms are now expecting guidance by August at the latest, one of the people told Semafor. “We expect [Treasury officials] to define requirements and work with firms to figure out who’s best situated to host rollover accounts,” the person said, adding that the rollover accounts will boost signups because “more people can participate through their trusted provider.”

Trump Accounts provide eligible American children with tax-advantaged investment accounts. Eligible children born in the years 2025 through 2028 qualify for an initial $1,000 contribution from the U.S. Treasury. Family, friends, and employers can collectively contribute up to $5,000 per year.

The contributions are automatically invested in a default qualifying low-cost index fund designed for long-term growth potential. According to experts cited by Semafor, more than half of the children eligible for the program's $1,000 seed deposit have yet to enroll.

SpaceX (SPCX [https://seekingalpha.com/symbol/SPCX]) has reportedly discussed [https://seekingalpha.com/news/4608370-spacex-is-said-to-weigh-trump-accounts-contribution-as-musk-trump-relationship-warms]the possibility of contributing shares to the children's savings program. Earlier this week, Micron Technology (MU [https://seekingalpha.com/symbol/MU]) said [https://seekingalpha.com/news/4608442-micron-commits-250m-to-trump-accounts]it has invested $250M to increase long-term savings opportunities for children and families through Trump Accounts.

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