Beginning July 4, parents can begin investing in what are known as Trump Accounts designed for children’s future financial growth.
Through this innovative initiative, the Treasury Department is planning to allocate $1,000 for every child who is registered and born in the United States from January 1, 2025, to December 31, 2028.
Children below the age of 18 with a valid Social Security number can join these accounts; however, the $1,000 deposit is exclusive to those who arrive between 2025 and 2028.
Introduced as a core aspect of President Donald Trump’s key tax and expenditure legislation passed last year, Trump Accounts are believed to be “one of the most transformative policy innovations of all time,” as stated by the president during a summit dedicated to these accounts in January.
Families and guardians will find it beneficial to familiarize themselves with the details surrounding Trump Accounts.
How to opt into Trump Accounts
Parents and guardians can open a Trump Account for eligible kids by electing in through IRS Form 4547 when filing a tax return.
A child’s family members, relatives and friends may contribute up to $5,000 into their Trump Account each year. Corporations and philanthropies like nonprofits and local governments may also make tax-deductible contributions of up to $2,500 a year into the account.
Multiple corporations, including BlackRock, Chipotle, Mastercard, Robinhood and Uber, have already said they will match Trump Account contributions and states are also expected to make contributions.
Billionaire Michael Dell, founder and CEO of Dell Technologies, and his wife, Susan Dell, pledged in December 2025 to donate over $6 billion to supplement Trump Accounts, seeding them with $250 each.
How Trump Accounts work
Money in Trump Accounts will be invested into the stock market, primarily in a broad index fund that tracks the market over time. The money would then increase over time with compound savings.
Trump Accounts are tax-advantaged, similar to the advantages of a traditional IRA.
Kids will not have access to their Trump Accounts until they turn 18 years old and can then only use the funds for certain uses, such as paying for school, buying a home or launching a business without incurring penalties.
Children can contribute to the fund themselves once they start earning income.
Trump Accounts for older children
Children under 18 who were born before Jan. 1, 2025 are also eligible for Trump Accounts. However, these accounts won't receive the $1,000 contribution from the federal government.
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