(NEXSTAR) — Excitement is mounting as the eagerly anticipated Trump accounts designed for children prepare to welcome their first contributions.
With over 6 million registrations already recorded, these savings and investment accounts, according to the Treasury Department, promise to be a game-changer. Established under the One Big Beautiful Bill Act, Trump accounts are akin to retirement accounts, designed to grow alongside your child’s journey into adulthood.
Once they reach the age of 18, young beneficiaries will gain access to these funds, usable for specific expenses.
As the official rollout nears on July 4, there are some key details families should be aware of to fully benefit from these accounts.
How to sign up and access Trump accounts
If you have yet to sign up or if you’re anticipating the arrival of your little one, rest assured there’s still an opportunity to get involved. Simply complete Form 4547, conveniently available on the official Trump account website.
You will need your information as well as your child’s. You will also be asked if you would like to receive the optional $1,000 seed money from the Treasury, should your child qualify. More details can be found here. Accounts are free to start.
Who is eligible for a Trump account?
Any U.S. child with a Social Security number who is under the age of 18 qualifies for a Trump account. If their Social Security card reads “Valid for Work Only with DHS Authorization,” the IRS says their Social Security number is considered “valid only as long as the DHS authorization is valid.”
The age of your child and where you live will impact whether or not they receive seed funds to kickstart their account. Millions qualify for at least $250 in seed money.
The largest start-up money currently available is the one-time, optional deposit of $1,000 from the Treasury Department for all children born between Jan. 1, 2025, and Dec. 21, 2028. For currently eligible children, this seed money is expected to be available by July 4.
An initiative driven by first lady Melania Trump also aims to expand access to children in foster care. State, territorial and tribal child welfare agencies have been called on to open a Trump account for the eligible children under their care. Nearly two dozen states have already pledged to allow state agencies to begin the registration process.
Who can contribute to Trump accounts?
Essentially, anyone could contribute, though there are limits on certain contributions.
Seed funds from the local, state or federal government, as well as philanthropic efforts, can be added to accounts. These funds do not count toward contribution caps.
Contributions can also come from you, friends, family and other adults, though these funds have a $5,000 annual cap. Your employer can make contributions, with an annual cap of $2,500, which counts against the aforementioned $5,000. Previously announced employer contributions from several companies are also available.
These caps will be adjusted yearly based on inflation, the IRS said.
What can Trump accounts be used for?
When your child turns 18, they can use the accrued funds for education costs, a home purchase or to start a business.
There may be additional tax on early distributions from the account, and the IRS notes that there may be exceptions “such as for distributions for higher education expenses or first home purchases.”
How large could Trump accounts become?
Like retirement accounts, this will vary.
Let’s say you start an account for your child, who is eligible to receive the $1,000 seed funds from the Treasury, but no additional contributions are made. If the S&P 500 continues its annual growth rate of 10.5%, Treasury Secretary Scott Bessent previously predicted the account could grow to roughly $600,000 by the time your child reaches retirement age.
An analysis by the Council of Economic Advisers suggested the account of a child born in 2026 could be worth more than $300,000 by the time they turn 18 if the maximum annual contributions are made. By 28, the account could be worth more than $1 million, under a high-yield scenario.
The IRS explains that the “growth period” for the accounts will end on Dec. 31 of the year before the child turns 18.
As Trump accounts launch, the Treasury is warning parents to be aware of scams. Official emails about the accounts will come from the address “no-reply@TrumpAccounts.Treasury.gov.” The Treasury is not contacting parents and guardians via phone call or text message. If you need to contact support, you will find in-app and online callback requests.
You should also only access the account online, via TrumpAccounts.gov, or via the mobile app.