Some more great news on the MAGA accounts.
Last year I posted on the Money Accounts for Growth and Advancement (MAGA), one of the greatest, if underreported, features of the 2025 Big Beautiful Bill. Beginning January 1st, 2025, every newborn American child will have a one-thousand-dollar deposit made for them into a 401k account. Family or friends can make additional contributions, up to a five-thousand dollar a year limit. From my first article, running some basic numbers on an investment calculator:
Suppose John Doe is born and only the $1,000 is deposited. Assume a 10% yearly return (actually slightly lower than historical average), after 18 years the initial investment is up to $5,600. Now if the family can add $2, 000 a year until high school graduation, that’s $101,000 in the bank. Max the contribution out at $5, 000 a year, our kiddie starts out life with $243, 500 in assets.
Let’s say John doesn’t use the $243, 500 for college but leaves that in the bank. At age thirty, he takes out $10,000 for his first home. He still has more than $750, 000 in retirement savings. He leaves that alone for the next three decades, he enters his retirement years with over 13 million in this account.
Now that is a best-case scenario, but the Rule of 72 is a beautiful thing.
A staffer at the Urban League complained “lower-income Americans might not have the ability to contribute to the account, ‘I don’t see a way that this reduces wealth disparities.’” Fair enough, let’s see what the initial investment does over time. Start with $1,000 at birth, assuming retirement at 67, this will grow to $593, 000.
Now that is a lot less money in 2092 than 2025, but still a major asset one controls for their life. Assume Joe and Jane Doe marry, have three children, and when they retire their accounts have almost 1.2 million in assets. If their accounts are half that when they pass, each child will inherit around $200,000. That is life changing money for millions, at the cost of less than four billion a year.
The accounts go live in July and it has a website, TrumpAccounts.gov. I hope that really annoys many liberals out there. Now along with this seed money, Americans got some other good news on these accounts. From The Hill:
So far this week, Coinbase, JPMorgan Chase, Steak ‘n Shake and Turning Point USA have announced they will match that $1,000 contribution for the children of their employees.
“JP Morgan Chase has demonstrated a long-term commitment to the financial health and well-being of all of our employees and their families around the world, including more than 190,000 here in the United States,” JP Morgan Chase CEO Jamie Dimon said in a release. “By matching this contribution, we’re making it easier for them to start saving early, invest wisely, and plan for their family’s financial future.”
Turning Point USA CEO Erika Kirk wrote Wednesday on social platform X that the organization and its affiliate, Turning Point Action, will match the Treasury Department’s contribution dollar-for-dollar “for every eligible employee’s newborn baby.”
“We’re proud to stand with @POTUS in supporting families and investing in the future of America,” she added.
During a Wednesday event touting the accounts, Treasury Secretary Scott Bessent said that Broadcom, Intel, Comcast and Chipotle all pledged to match the $1,000 contribution earlier in the day. President Trump also said at the event that Continental Resources, Nvidia and Uber will also match the government’s deposit.
Spokespeople for Chipotle, Comcast, Nvidia and Uber confirmed their plans to match contributions on Thursday. The Hill has also reached out to Broadcom and Continental Resources.
“Donations from employers are essential to bringing the President’s vision to life,” Bessent noted.
Other companies, such as BlackRock, BNY, Charles Schwab, Charter Communications, Robinhood and SoFi previously pledged to match the government’s contribution to the accounts of employees’ children…
Not to be outdone, America’s largest credit card issuer, VISA, is allowing cardholders to transfer cashback earning to the Trump Accounts. From their website:
While Trump Accounts have been a known quantity for some time, the president’s announcement about Visa‘s role is new. The credit card payment network will allow those who have eligible cash-back-earning credit cards to contribute their rewards to Trump Accounts.
The idea behind this move is that it’s an easy way to consistently earn cash-back rewards from everyday spending and deposit them into these new deferred savings accounts for children…
Parents, grandparents who travel a lot for business, another way to help the kiddies out. Now what is not clear is can a kid born before 2025 participate. Just let parents, etc. put in the money into an account and let it grow tax deferred. If it’s not in the actual statue, sounds like executive order time President Trump. Let the Democrats tell millions of parents, “No, you can’t put money for your children into a tax deferred account. Who do you think you are, us?” Remember Mr. President, you have a pen, and you have a phone.
I recall the canard pushed by liberals about conservatives, “If you value children, you will invest in them!” By that they always mean federally funded indoctrination, err childcare, money for teachers’ unions, etc. Well, we’re investing in their futures, at a relatively low cost, which will give countless families help in whatever route the child goes (college is not for everyone, but homeownership and other investments are).
With this program, we can get younger people thinking of long-term investments. A teenager looks at how much he can have for relatively little invested in his teen years, he will start wanting to defer gratification. As they lead a healthy life, they leave a growing asset to their descendants. Building wealth over generations for relatively little initial investment. Can’t ask for better.
Michael A. Thiac is a retired Army intelligence officer, with over 23 years experience, including serving in the Republic of Korea, Japan, and the Middle East. He is also a retired police patrol sergeant, with over 22 years’ service, and over ten year’s experience in field training of newly assigned officers. He has been published at The American Thinker, PoliceOne.com, and on his personal blog, A Cop’s Watch.
Opinions expressed are his alone and do not necessarily reflect the opinions of current or former employers.
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