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GOP Advances MAGA Savings Accounts for Children in $5 Trillion Tax Overhaul

The proposed accounts would provide $1,000 at birth and allow parents to invest up to $5,000 annually, though tax rules remain unresolved as the bill progresses toward full House and Senate votes.

The GOP is proposing tax-preferred 'MAGA' accounts for children.
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Overview

  • The MAGA accounts would automatically provide $1,000 to U.S.-born children from 2025 to 2028, with parents able to contribute up to $5,000 annually for investments in U.S. equities.
  • Funds could be used for education, home purchases, job training, or starting a business, with partial withdrawals allowed at age 18 and full access by 31.
  • Republicans are debating whether contributions and earnings will be tax-exempt or if withdrawals will be taxed at long-term capital gains rates.
  • The accounts are part of a broader $5 trillion GOP tax bill, which has cleared key House committees and awaits votes in both chambers before reaching President Trump.
  • With most Trump-era tax cuts expiring in 2025, Republicans are pushing to finalize the legislation to maintain individual tax benefits and advance their pro-family agenda.