Trump Accounts Launch July 5 with 1,000 Dollar Government Seed Deposit for Children

Trump Accounts, a new federal savings program for children, became active on July 5, 2026, under the One Big Beautiful Bill Act passed in 2025.

The program provides a $1,000 government seed deposit for eligible children. To qualify for the seed money, a child must be a U.S. citizen born between January 1, 2025, and December 31, 2028, and must have a valid Social Security number.

Families can contribute up to $5,000 per child annually, a limit indexed for inflation after 2027. Employers may contribute an additional $2,500 per employee annually toward a dependent's account through Section 125 cafeteria plans. Those employer contributions are excluded from the employee's income but count toward the $5,000 annual cap.

The $1,000 federal seed deposit does not count toward the annual limit.

During the growth period, until the child turns 18, funds must be invested in low-cost U.S. stock index funds with annual fees capped at 0.1 percent. Leveraged and sector-specific funds are not permitted.

Earnings grow tax-deferred. When withdrawn, distributions are taxed as ordinary income. Withdrawals before age 59 and a half are generally subject to a 10 percent penalty, with exceptions for qualified higher education expenses, first-time home purchases, or starting a business.

To open an account, an authorized individual must submit IRS Form 4547 online at trumpaccounts.gov, through a 2025 tax return filing, or by mail.

Major financial firms including Goldman Sachs and Morgan Stanley have begun setting up programs to facilitate employer matches for the accounts.