Trump Accounts are a new federal savings program designed to give children born between January 1, 2025, and December 31, 2028 an automatic financial head start. These tax-advantaged investment accounts were established through federal legislation known as the One Big Beautiful Bill Act and are intended to help families build long-term savings for their children.
Why Trump Accounts Matter
Trump Accounts aim to jumpstart financial security for an entire generation of American children. Each eligible child receives a one-time $1,000 seed contribution from the U.S. Treasury once their account is established — a benefit designed to grow over many years through investment in the stock market.
A major philanthropic boost also supports the initiative: the Michael and Susan Dell Foundation committed billions to provide additional seed contributions to millions of children in lower-income ZIP codes, enhancing access to this opportunity.
Eligibility: Who Can Get a Trump Account
To qualify for the $1,000 federal seed contribution, a child must:
- Be a U.S. citizen;
- Have a valid Social Security number;
- Be born between January 1, 2025 and December 31, 2028.
Children under 18 outside those birth years may still have a Trump Account opened — they just won’t receive the one-time federal $1,000 contribution.
How Trump Accounts Work
Trump Accounts function similarly to traditional IRAs for kids, but with unique rules:
- The account holds low-cost U.S. equity index investments (such as an S&P 500 index fund).
- Accounts are managed by a parent or guardian until the child turns 18.
- Funds grow tax-deferred — meaning taxes on gains are postponed until withdrawal.
- Once the child turns 18, they take control and can use the money for education, a home, entrepreneurship, retirement, or other financial goals.
Contribution Rules
Alongside the one-time government seed money, family and other supporters can contribute additional funds:
- Parents, grandparents, relatives, friends: Up to $5,000 per year per child.
- Employers: Can contribute up to $2,500 per employee per year — and that employer deposit counts towards the $5,000 limit.
- Charities and qualifying entities: May contribute additional amounts if offered broadly (e.g., to all children born in a year).
These annual limits begin to adjust for inflation starting in 2028.
When Trump Accounts Launch
Trump Accounts will be available for contributions starting July 4, 2026. However, parents or guardians can file to open an account earlier by making an election with the IRS when they file their tax return or through an online portal that launches as part of the official rollout.
How to Claim a Trump Account
To establish and claim the $1,000 for an eligible child, follow these steps:
1. Prepare IRS Form 4547
Authorized individuals — such as a parent, guardian, or legal adult relative — must complete IRS Form 4547. This form is the formal election to create a Trump Account for a child and trigger the one-time seed contribution from the Treasury.
You can file Form 4547:
- With your tax return (e.g., when filing your 2025 return); or
- Through an online portal once it becomes available on the official Trump Accounts website in mid-2026. See the online portal here.
2. Submit the Election
After you file the form, the Treasury will notify you and provide instructions to activate the account with their financial agent.
3. Receive the $1,000 Seed Contribution
Once the election is approved and the account is set up, the U.S. Treasury deposits the $1,000 into your child’s Trump Account.
4. Contribute and Grow
Although not required, additional contributions of up to $5,000 annually can be made to accelerate growth — an excellent opportunity for long-term wealth building.
Why These Accounts Could Be Valuable
A key reason many financial advisors encourage participation is that even small contributions compound powerfully over time. For example, a $1,000 investment at birth growing at historical stock market rates could become a significant asset by adulthood.
Unlike typical spending on everyday expenses, this account is designed to be a wealth-building tool, potentially helping fund education, first-home purchases, business startups, retirement, and more.
Final Thoughts
Trump Accounts represent a major change in how families can save for their children’s financial futures. By offering automatic seed money and tax-advantaged growth, this program could help set up millions of kids for lifelong financial success.
To take full advantage of this opportunity for children born between 2025 and 2028, parents should plan ahead, prepare IRS Form 4547, and stay informed about the launch and enrollment process.
