A new federal program gives every American child under 18 access to a tax-advantaged investment account backed by the U.S. Treasury. If your child was born between January 1, 2025 and December 31, 2028, it comes with a free $1,000 from the federal government. Over 5 million families have already signed up. Here’s what you need to know.
The Basics
Trump Accounts are custodial IRAs for minors — owned by the child, managed by a parent or guardian until age 18. Money is invested in low-cost S&P 500 index funds, grows tax-deferred, and cannot be withdrawn before 18. Contributions open July 4, 2026. Registration is open right now.
There is no cost to open or maintain an account.
Who Qualifies
- Any U.S. child under 18 with a valid Social Security number
- Children born 2025–2028 receive a $1,000 government seed contribution
- Older children can still open an account — no seed money, but the investment opportunity is the same
How to Sign Up Now
Online at form.trumpaccounts.gov or via IRS Form 4547 when you file your federal taxes.
Contribution Limits
Up to $5,000/year per child:
- Parents, family, and friends: Up to $5,000/year combined. No earned income requirement.
- Employers: Up to $2,500/year through a Trump Account Contribution Program — counts toward the $5,000 cap. Ask your HR department if your company participates.
- Federal seed contribution: $1,000 for children born 2025–2028. Does not count toward the annual limit.
The Michael & Susan Dell Foundation has pledged $6.25 billion to seed accounts for eligible children. Visit InvestAmerica.org to see if your child qualifies.
When Can the Money Be Used
Funds are locked until 18. After that, standard IRA rules apply. Penalty-free uses include:
- College or job training
- First home purchase (up to $10,000)
- Starting a business
Withdrawals are taxed as ordinary income. Early withdrawals before 59½ carry a 10% penalty unless an exception applies.
Making the Most of It
Even small monthly contributions added to the $1,000 seed can grow significantly over 18 years in a broad market index fund. Trump Accounts work alongside 529s, Roth IRAs, and other savings vehicles, not instead of them. A financial advisor can help you coordinate.
Keep records of who contributed and from what source. Different contribution types have different tax treatment at withdrawal.