Trump Accounts Launch July 4, Offering Children a Head Start on Wealth

Trump Accounts, officially called 530A accounts, launched on July 4, 2026, giving families a new way to build long-term wealth for children. The accounts were created under the One Big Beautiful Bill Act, signed in 2025.

Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with a Social Security number are eligible for a one-time $1,000 government deposit. Families, friends, and employers can contribute up to $5,000 per year per child, with the limit indexed for inflation starting in 2028.

Funds must be invested in broad U.S. equity index funds or ETFs, such as those tracking the S&P 500, with annual fees capped at 0.1 percent. Withdrawals are not allowed during the child's first 18 years, except in cases of death or excess contribution returns. At age 18, the account converts to a traditional IRA, with standard distribution rules applying after that.

Employers can contribute up to $2,500 per employee annually toward a child's account, and those contributions are not counted as taxable income for the employee. The IRS confirmed that contributions to Trump Accounts will not trigger gift tax reporting requirements.

Accounts are managed through the U.S. Treasury, with Bank of New York Mellon handling initial accounts and a Robinhood-built app for tracking. Parents can open an account by filing IRS Form 4547 or visiting TrumpAccounts.gov.

Philanthropists have added to the program. Michael and Susan Dell pledged $6.25 billion to provide $250 deposits for children age 10 or younger living in ZIP codes with median incomes of $150,000 or less. Ray and Barbara Dalio made similar targeted gifts for Connecticut families.

Critics from the Urban Institute and Brookings Institution said the accounts may disproportionately benefit higher-income families who can afford to maximize the annual contribution limit.