What are Trump Accounts? A guide to investing and saving for children

• Start investing early: Trump Accounts are tax-advantaged investment accounts designed to help children begin building wealth and participating in long-term market growth from an early age.
• Government contribution plus ongoing savings: Eligible children may receive a one-time $1,000 government contribution, with additional contributions allowed from parents, family members, employers, and other eligible sources, such as individual philanthropists and other charitable organizations.
• Signing up for Trump Accounts: Parents and guardians may establish a Trump Account for eligible children under age 18 with a valid Social Security number. To sign up, account enrollment is expected through TrumpAccounts.gov or designated program enrollment forms.

Trump Accounts are a new federal investment program designed to help children begin building wealth from an early age. Slated to become available for initial contributions on July 4, 2026, these accounts are expected to provide eligible children born between January 1, 2025, and December 31, 2028, with a one-time $1,000 government contribution, which can then remain invested alongside future contributions from parents, family members, employers, and other eligible sources.

The accounts may help encourage long-term investing by giving children early exposure to U.S. stock market investments tracking a qualified index, such as the S&P 500 Index. Starting early gives investments more time to grow. Even small contributions can potentially increase in value over decades through the power of compound growth.

Before opening an account, families should understand how Trump Accounts work, who may qualify, and how these accounts may fit into broader investment goals.

• Trump Accounts were established under federal legislation enacted in 2025.
• Trump Accounts are government-created investment accounts designed to help children begin investing and building wealth from an early age.
• The program includes a one-time $1,000 government contribution for eligible children born between January 1, 2025, and December 31, 2028.
• Parents, family members, employers, charities, and other eligible contributors may contribute up to $5,000 annually per child (subject to program rules). See details below.
• Account assets are generally limited to certain low-cost index funds tracking the U.S. stock market.
• Withdrawals are generally restricted until the child reaches the age of 18.

A Trump Account is a tax-advantaged investment account established for eligible children. Under current legislation, the accounts are structured similarly to traditional individual retirement accounts (IRAs), with a parent or guardian serving as custodian until the child reaches the age of 18.

Unlike many traditional savings accounts, Trump Accounts are generally invested in low-cost U.S. stock market index mutual funds and ETFs. The program is designed to give children an opportunity to participate in long-term market growth from an early age through investments tied to the broader U.S. economy.

Before the child reaches age 18, special rules govern contributions, investments, and distributions. After age 18, many of those restrictions no longer apply and the account generally operates more like a traditional IRA.

The U.S. Treasury Department will create and administer initial accounts, and families will be able to roll over to a financial institution of their choice over time.

The program was established to help children begin investing early and participate in long-term market growth. By combining an initial government contribution with the opportunity for additional contributions over time, the accounts are intended to encourage long-term saving and investing habits and help support eligible expenses including education and homeownership.

Children under age 18 who have a valid Social Security number may be eligible for a Trump Account. Under current guidance, children born between January 1, 2025, and December 31, 2028, may qualify for a one-time government contribution of $1,000. Children born outside that window are still eligible for a Trump Account, they simply won't receive the initial $1,000 government seed contribution, although may be eligible for additional private contributions. Additional eligibility requirements may apply.

Getting started matters. Staying invested and contributing over time may matter even more. While the government's contribution helps eligible children begin investing, hypothetical long-term outcomes depend on time in the market, ongoing contributions, and investment performance.

Parents, family members, employers, charitable organizations, and other eligible sources can make contributions, subject to annual limits and applicable rules. Because these accounts are designed for long-term savings, withdrawal rules and tax treatment may differ from other account types.

Federal law limits eligible investments to low-cost index mutual funds or ETFs tracking a U.S. equity index (e.g., the S&P 500). Investment options must meet specific statutory requirements, including total annual fund expenses capped at 0.10%. 

Beginning January 1 of the calendar year in which the beneficiary turns 18, investment restrictions are lifted and the account generally operates more like a traditional IRA. This allows account assets to be rolled over or transferred to other eligible retirement arrangements, which may provide access to a broader range of investments, including actively managed funds and individual stocks and bonds.

The tax treatment of withdrawals depends on the nature and source of contributions, as well as the applicable tax rules. Amounts attributable to after-tax contributions made by individuals are generally not included in taxable income when withdrawn, while pretax contributions, including eligible employer, charitable, and government contributions, are generally taxable as ordinary income. Investment earnings may also be subject to tax when withdrawn. The tax treatment of any investment earnings may vary depending on the specific circumstances and appliable law.

Distributions taken before age 59½ may be subject to an additional 10% tax under applicable tax rules unless an exception applies. Examples of exceptions that may apply include higher education expenses, qualified first-time home purchases, or other circumstances permitted under applicable tax law. Whether an exception applies depends on individual facts and circumstances.

Trump Accounts are one of several ways families can save and invest for a child's future. While they share some similarities with other account types, differences in eligibility, contributions, investments, and withdrawals make each account suited for different goals.

529 plans, for example, are generally designed to help families save for education expenses and offer tax advantages for qualified educational withdrawals. Trump Accounts, by contrast, are designed as long-term investment accounts with different contribution limits, investment requirements, and withdrawal rules.

Trump Accounts also differ from custodial Roth IRAs. Roth IRAs for Kids generally require earned income, while Trump Accounts do not. This may make Trump Accounts accessible to younger children who are not yet working.

Families may also consider custodial brokerage accounts, which typically offer greater investment flexibility but do not include the same government contribution or program-specific requirements as Trump Accounts.

Because each account type has different tax considerations, investment options, contribution limits, and intended uses, the right approach will depend on a family's goals, time horizon, and overall financial plan.

• Why does the investment approach matter?
  Trump Accounts are designed around low-cost, investment options that provide exposure to the U.S. stock market. This approach may help keep investing simple, manage costs, and allow families to participate in long-term market growth through a portfolio of U.S. stocks.
• How important is time in the market?
  Because Trump Accounts are intended for long-term investing, the account's potential benefits may be greatest when contributions remain invested over an extended period.
• Why is it important to follow program updates?
  he program is still being implemented, and additional details related to account administration, enrollment, and operational requirements may continue to evolve. Families should monitor official Treasury Department and IRS resources for the latest information.

Trump Accounts introduce a new way for families to invest on behalf of children through an account structure that offers tax-deferred growth. For eligible children, the program currently includes a one-time government seed contribution through a federal pilot program funded through 2028. Combined with additional yearly contributions and the potential for decades of investing and compounding, the program can help create new pathways to long-term wealth building.

As the program continues to be implemented, families may want to evaluate how Trump Accounts fit alongside other savings and investment options, including 529 plans and custodial accounts. Understanding the account's contribution rules, investment requirements, and long-term objectives can help families determine whether a Trump Account aligns with their overall financial strategy. 

For many families, the greatest potential benefit of a Trump Account may simply be time – the opportunity to start early and remain invested over the long-term.