Trump Accounts Launch, Offering Families a New Way to Save for Children

Trump Accounts, a new federal investment program for children, launched in July 2026 under the One Big Beautiful Bill Act. The accounts are designed to help families build long-term wealth for children under age 18.

Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with a Social Security number are eligible for a $1,000 government-funded seed deposit. A separate $6.25 billion initiative from the Michael and Susan Dell Foundation provides $250 deposits to up to 25 million children age 10 or younger who live in ZIP codes with median incomes below $150,000.

Families can contribute up to $5,000 per year during the account's growth period, which lasts until December 31 of the year the child turns 17. Employers may also contribute up to $2,500 annually per employee toward a child's account, which counts toward the $5,000 limit but is not taxable income for the employee.

Funds must be invested in broad U.S. equity index funds, such as S&P 500 trackers, with no leverage. Annual fees are capped at 0.1 percent. Distributions are generally prohibited during the growth period except in the event of the account holder's death or to return excess contributions.

Once the growth period ends, the account converts to standard traditional IRA rules. Unlike 529 plans, withdrawals are taxed as ordinary income, and the accounts can be used for broader financial goals beyond education.

Accounts can be opened at TrumpAccounts.gov or by filing IRS Form 4547. The election to open an account must be completed before January 1 of the year the beneficiary turns 18.