Everything You Need to Know About the Trump Accounts
The administration just announced a first-of-its-kind investment program for newborns. If you have young children - or are planning to - this is worth a couple minutes of your time.
What Is a “Trump Account”?
A Trump Account is a tax-advantaged investment account established under the One Big Beautiful Bill Act. It works like a traditional IRA but designed specifically for minors. The money goes into low-fee index funds managed by approved financial institutions and grows tax-deferred until your child is ready to use it.
Who Qualifies?
Any child who is a U.S. citizen is eligible. Kids born between 2025 and 2028 get something extra - a $1,000 contribution directly from the U.S. Treasury to get them started. Children born before 2025 can still open an account, they just don't get the seed money.
How Much Can You Contribute?
Parents can contribute up to $5,000 per year. Employers can chip in an additional $2,500 on top of that. Charitable organizations and government entities can also contribute for eligible children in their communities.
What Can the Money Be Used For?
This is not a piggy bank. Early withdrawals are limited to three things: college tuition, a business startup, or a first home down payment. Everything else stays locked until retirement age.
What Happens When Your Child Turns 18?
The account automatically converts into a traditional IRA. At that point it follows standard IRA rules and your child takes over from there.
How Do You Sign Up?
Treasury launched the Trump Accounts app on May 28 in both the Apple App Store and Google Play. Contributions don't open until July 4, 2026, but you can get started now by submitting IRS Form 4547.
The Bottom Line
This is truly a great opportunity for kids to get invested early. The oldest rule in investing is that the more time you let your money compound, the biggest the eventual returns. An account that starts at birth with $1,000 and grows for 18 years before a single additional dollar is added has a massive head start.
If you have questions about whether this fits into your overall financial plan, click below to get in touch.
Michael Walstedt is a fee-only financial advisor and founder of Reliant Wealth Advisory, based in Hoboken, NJ. This article is for general informational purposes and may not apply to every individual situation. If this is a question you’re actively considering, a personalized conversation can often bring clarity.
