President Donald Trump’s new Trump Accounts officially launch on July 4, marking the beginning of a new federal savings program designed to help American families build long-term wealth for their children.
Created through Trump’s One Big Beautiful Bill Act, the tax-advantaged investment accounts are intended to give children an early financial foundation by allowing families, employers and qualifying organizations to contribute toward their future.
Here’s what families need to know as the program goes live.
What is a Trump Account?
Trump Accounts — formally known as 530A accounts — are tax-advantaged investment accounts established for children under 18.
Unlike 529 college savings plans, Trump Accounts are designed to help build long-term wealth, with investments growing tax-deferred over time in diversified U.S. stock funds.
The program also includes a $1,000 federal seed deposit for eligible children born between Jan. 1, 2025, and Dec. 31, 2028.
Who is eligible?
Any U.S. citizen child under the age of 18 with a valid Social Security number may have a Trump Account opened on their behalf by a parent, legal guardian, grandparent or another authorized adult.
However, only children born during the 2025-2028 eligibility window qualify for the Treasury Department’s $1,000 government contribution.
Children born before 2025 can still open accounts and may qualify for certain private philanthropic contributions.
What free money is available?
The federal government’s $1,000 deposit is only the beginning.
Several private organizations have pledged additional funding for qualifying children:
- The Michael & Susan Dell Foundation plans to provide a $250 contribution for children age 10 or younger who live in ZIP codes with a median household income of $150,000 or less.
- Dalio Philanthropies has pledged an additional $250 for hundreds of thousands of eligible children in Connecticut.
- Several major employers, including Dell, Uber, Goldman Sachs and Altimeter, have announced programs to contribute to the accounts of employees who become new parents.
Treasury Secretary Scott Bessent has also suggested additional private-sector commitments could be announced in the future.
How much can families contribute?
Beginning July 4, families may collectively contribute up to $5,000 per year in after-tax dollars until the year before the child turns 18.
The contribution limit is scheduled to adjust for inflation after 2027.
Employers may also contribute up to $2,500 annually toward an employee’s child’s account, with those contributions generally excluded from the employee’s taxable income.
Certain charitable organizations and state or local governments may also make qualifying contributions that do not count against the annual contribution limit.
How are the funds invested?
According to Treasury guidance, assets will be invested in diversified U.S. stock index funds.
Bank of New York Mellon will initially oversee account administration, while families will be able to monitor balances and contributions through the official Trump Accounts mobile app.
How much could the account grow?
Actual investment returns will depend on market performance and future contributions.
Treasury estimates that an account receiving only the government’s initial $1,000 deposit could potentially grow substantially over several decades if invested continuously.
Families who consistently make annual contributions throughout childhood could accumulate significantly larger balances over time, although financial experts caution that future market returns are never guaranteed.
When can the money be used?
Generally, funds remain invested until the child reaches age 18.
After that, standard IRA rules apply.
Under federal law, account holders may eventually use the funds for purposes such as:
- Purchasing a first home
- Paying qualified education expenses
- Starting a business
- Retirement savings
- Other qualifying distributions under existing IRA rules
Early withdrawals before retirement age may still be subject to taxes and penalties unless an exception applies.
How do parents open an account?
Families can open an account through TrumpAccounts.gov or by following IRS instructions associated with Form 4547.
After opening the account, parents should activate and manage it through the official Trump Accounts app.
The Treasury Department says official emails regarding the program will come only from [email protected] and warns families to ignore unsolicited calls or text messages claiming to represent the program.
Even Some Democrats Are Encouraging Families To Participate
One of the program’s more surprising supporters has been Sen. John Fetterman (D-Pa.).
Although he voted against the legislation creating Trump Accounts, Fetterman recently announced he plans to open accounts for all three of his children, even though they are too old to qualify for the government’s $1,000 seed deposits.
“I am begging your parents to get involved in this,” Fetterman said during a youth basketball event in Pennsylvania.
“It’s about all of your futures.”
He also urged families not to allow politics to influence their decision.
“Do not fall into that political trap,” Fetterman said. “This isn’t some radical thing. … Do this for your child.”
With the program officially launching on Independence Day, millions of American families can now begin opening accounts and, for those who qualify, receive the government’s initial investment designed to help build long-term financial security for the next generation.
