Trump Accounts Launch July 4 Offering Children Tax-Deferred Savings

Trump Accounts, a new federal savings program for children, launched on July 4, 2026, under the One Big Beautiful Bill Act. The accounts are designed to help families build long-term financial safety nets for their children.

Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with a valid Social Security number are eligible for a one-time $1,000 government seed deposit. Parents, family members, and employers can contribute up to $5,000 per year, with the limit indexed for inflation after 2027.

The accounts function as traditional individual retirement accounts for children. During the growth period, which lasts until January 1 of the year the child turns 18, funds are restricted to low-cost, broad U.S. equity index funds with annual fees capped at 0.1 percent. No leverage is permitted.

Accounts can be opened by filing IRS Form 4547 or registering at TrumpAccounts.gov. An official mobile app, developed in partnership with BNY Mellon and Robinhood, is available for account management.

No withdrawals are permitted before the end of the growth period, except in cases of the beneficiary's death or correction of excess contributions. After age 18, the account follows standard traditional IRA rules. Early withdrawals before age 59 and a half generally incur a 10 percent penalty, with exceptions for qualified higher education expenses and first-time home purchases.

The Michael and Susan Dell Foundation committed $6.25 billion to provide $250 deposits for up to 25 million children age 10 or younger in specific ZIP codes. Other philanthropic organizations have pledged regional support.

Financial advisors noted that a $1,000 investment in a broad index fund at birth, growing at historical market rates, could be worth tens of thousands of dollars by the time a child reaches adulthood.