President Donald Trump recently announced the “Trump Accounts” initiative, a federal children’s savings program aimed at children under 18 years old who have a valid Social Security number and U.S. citizenship. The program is set to officially launch in mid-2026, on July 5. Designed as a tax-advantaged system, the administration’s goal is to give children a financial head start in early life. Let’s break down what this actually means for parents with young children.
“Trump Accounts” in Simple Terms
Trump Accounts are designed to function similar to retirement accounts, meaning children will not be able to access the money until they turn 18. According to trumpaccounts.gov, every eligible child will receive a $1,000 seed contribution deposited by the U.S. Treasury. Parents and guardians may contribute up to $5,000 per year to grow the account over time, though contributions are not required. The funds will be invested in broad U.S. equity market funds that are intended for long-term growth.
What Makes a Child Eligible for the $1,000 Contribution?
To qualify for the contribution, a child must be born in the U.S. between January 1, 2025 and December 31, 2028. Children under 18 who fall outside of this age range may still open a Trump Account, and family members can contribute to it; however, they will not receive the federal seed money.
Ultimately, the account is intended to serve as a tax-advantaged investment that belongs entirely to that child. When the child turns 18, they gain full legal control of the account. At that point, funds can be used for education, buying a home, starting a business, financial support, or retirement. The official website suggests that the biggest benefit comes from letting it grow long-term.
The Beginning Steps
Although the initiative launches later this year, parents can begin preparing by completing the newly-created IRS Form 4547.
Once an account is established, children will have access to view the balance. With the guidance of a parent or guardian, children are encouraged to monitor contributions and track their savings over time.
To learn more about Trump Accounts and keep up with the latest information, visit the official website.