This weekend, the Trump administration is planning to roll out one of its most ambitious programs yet: Trump Accounts. Tied to America’s 250th birthday, the program is set to launch on July 4, giving around 1.5 million American babies $1,000 to help their future financial independence.
The program allows parents of children born during President Trump’s second term to open savings accounts,dubbed Trump Accounts, and receive $1,000 from the government. The accounts follow a 2025 federal tax law allowing a new type of tax-advantaged savings account, creating a path for savings for young children.
That amount is meant to serve as seed money which, in addition to future deposits, is invested into the stock market via private firms, allowing the money to grow alongside the child. The accounts are set to be fully in the child’s name with the parent as the sole custodian until the child turns 18. Additionally, the account does not allow withdrawals before the 18-year mark. Once 18, the account is set to automatically turn into a traditional IRA, a form of tax-advantaged account. Account holders are able to access the funds for qualified 529 expenses like college tuition or a down payment for a house, with taxes on the withdrawals varying per case.
Newborns eligible for the account and seed money must be born between Jan. 1, 2025 and Dec. 31, 2028, be US citizens, and have a social security number. But those born outside the timeframe and still under 18 can also apply for an account. According to USA Today, around 5 million individuals under the age of 18 have signed up for a Trump Account. While the account types are the same, those under 18 but outside of the eligible birthday window will simply not get the initial seed money.
Private donors have also jumped in on contributions, some of which may be claimed by those born outside of the timeframe. For instance, children 10 or younger in qualifying ZIP codes may be eligible for a $250 charitable deposit by the Michael & Susan Dell Foundation.
Once active on July 4, families and employers may begin contributing to the account, with a $5,000 annual limit per child. The limit is expected to be adjusted for inflation in years to come.
Families looking to set up an account may do so by filing an IRS Form 4547 directly via the IRS website, or head to Trumpaccounts.gov. For those who have already signed up, families will need to complete the account set up through an app or the Trump Accounts website before their account may start taking in contributions.
