Trump Accounts Launch July 4 Offering Tax-Deferred Savings for Children

The federal government launched Trump Accounts on July 4, 2026, a new tax-deferred savings vehicle for children under 18 established by the One Big Beautiful Bill Act.

Children born between January 1, 2025, and December 31, 2028, receive a $1,000 federal seed contribution. Any U.S. citizen child under 18 with a valid Social Security number is eligible to open an account.

Parents or guardians can start the enrollment process by filing IRS Form 4547. The Treasury Department also coordinates with the Social Security Administration to automate enrollment for newborns during birth registration.

During the first 18 years, funds must be invested in low-cost, broadly diversified U.S. equity index funds or ETFs tracking major indices like the S&P 500. Funds must carry an expense ratio of 0.10 percent or less. Accounts are managed through a platform run by Robinhood and BNY and accessed via the official Trump Accounts app.

Accounts grow tax-deferred. Upon withdrawal, funds are generally taxed as ordinary income at the child's tax rate. Early withdrawals before age 59 and a half may avoid penalties for qualified expenses including higher education, first-time home purchases up to $10,000, birth or adoption costs up to $5,000, and certain medical or emergency expenses.

Employers may contribute up to $2,500 annually per employee to an account, counting toward the $5,000 annual contribution limit. These contributions are not considered taxable income for the employee or the child.

The Michael and Susan Dell Foundation pledged $6.25 billion to provide $250 deposits to children 10 and under in specific ZIP codes with median incomes below $150,000.