A new federal savings and investment program known as Trump Accounts officially launches on July 4, giving many families a new way to begin building long-term financial assets for their children.
Created under legislation signed in 2025, the program allows parents and guardians to open tax-advantaged investment accounts for eligible children. For qualifying newborns, the federal government also provides a one-time $1,000 contribution to help jump-start long-term savings.
What Is a Trump Account?
A Trump Account is a long-term investment account established for a child and designed to encourage saving and investing from an early age.
The accounts are invested in diversified, low-cost U.S. stock index funds approved by the Treasury Department. Parents or another authorized adult manage the account during childhood, while the beneficiary gains control after reaching adulthood under rules established by the program.
Who Is Eligible?
Children who are U.S. citizens, have a valid Social Security number, and were born between Jan. 1, 2025, and Dec. 31, 2028, qualify for the federal government’s $1,000 seed contribution.
Parents may also open Trump Accounts for many other children under age 18, although those children generally are not eligible for the federal $1,000 deposit.
How Do Parents Open an Account?
Families must actively enroll by submitting IRS Form 4547, which establishes the account and, when applicable, requests the federal contribution.
The Treasury Department has also said additional online enrollment options will become available as the program rolls out.
How Much Can Families Contribute?
Beginning July 4, parents, grandparents, relatives, employers and other eligible contributors may begin adding money to a child’s account.
General annual contributions are limited to $5,000, while certain employer contributions have separate limits established under federal law. The accounts may also receive qualifying contributions from governments and charitable organizations under specific program rules.
How Can the Money Be Used?
The accounts are intended as long-term savings vehicles rather than short-term spending accounts.
Funds generally remain invested until the child reaches adulthood, after which withdrawals may be used for purposes permitted under the program, including education expenses, purchasing a first home, starting a business, or other qualifying uses established under federal law.
What Parents Should Know
Financial planners note that Trump Accounts are designed to complement—not necessarily replace—other savings options such as 529 college savings plans or retirement accounts.
For families with eligible children, however, the combination of a government-funded $1,000 contribution and years of potential investment growth could provide a meaningful financial head start if the money remains invested over the long term.
