Trump Accounts Open for Children on July 4

Investment accounts for children, officially called Trump Accounts or 530A accounts, opened for contributions on July 4, 2026, under the One Big Beautiful Bill Act.

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 dollar government seed deposit. Parents can open accounts by submitting IRS Form 4547 or through the TrumpAccounts.gov portal. The Social Security Administration has also begun automating enrollment for newborns during birth registration.

Accounts are held at Robinhood, with management and tracking through a mobile app developed in partnership with BNY, formerly Bank of New York Mellon. Funds are invested in low-cost, broad U.S. equity index funds, with the default being the State Street SPDR Portfolio S&P 500 ETF. Annual fees are capped at 0.1 percent.

Families, friends, and individuals can contribute up to 5,000 dollars per year, indexed for inflation after 2027. Employers can contribute up to 2,500 dollars annually per employee, which counts toward the 5,000 dollar limit but is not taxable income for the employee.

The accounts grow tax-deferred. When the child turns 18, the account converts into a traditional IRA. Early withdrawals before age 59 and a half may incur a 10 percent penalty, with exceptions for higher education costs, first-time home purchases up to 10,000 dollars, and certain medical or emergency expenses.

The Michael and Susan Dell Foundation pledged 6.25 billion dollars to provide 250 dollar deposits for children age 10 or younger who live in ZIP codes with median incomes below 150,000 dollars.