Introducing Trump Accounts: How to jumpstart investing for your children

A new type of investment account for children—known as a Trump Account—launches on July 4. Timed to coincide with Independence Day, it underscores a powerful idea: helping the next generation build a path towards financial independence by starting to invest earlier.

How early? From birth. In fact, under a temporary pilot program, the US government will deposit $1,000 into a Trump Account for eligible US citizens born from 2025 through 2028. 

A Trump Account can be opened for a child who is 17 years old or younger on the last day of the year in which an election to open an account is made. To make a contribution in 2026, for example, a child would have to be born in 2009 or later. The child must also have a Social Security number that’s valid for US employment.

That early start can be powerful. The longer money remains invested, the longer it can compound—meaning even modest contributions may grow over time.

Low-cost, tax-advantaged saving

Investment options are intentionally limited to low-cost, broadly diversified ETFs or mutual funds that track broad US stock market indices. The constraint is deliberate, designed to promote a simple, disciplined, low-cost, long-term investment approach.

Structurally, the Trump Account resembles a traditional IRA. It is owned by the child and managed by a parent or guardian until the child turns 18. While contributions aren’t tax deductible, they grow tax-deferred—meaning investments are not taxed until they are withdrawn.

Parents, grandparents, employers, and others can contribute to a child’s Trump Account. On January 1 of the year beneficiaries turn 18, the account transitions to a traditional IRA where the child takes control and can make additional deposits if they have earned income, extending tax-deferred growth.

How much can you contribute?

Contributions to a Trump Account are generally limited to $5,000 a year before the year the child turns 18. The one-time government seed contribution, if received, does not count toward this annual limit.

Employers that choose to contribute are limited to $2,500 per year, per employee. These contributions are excluded from the employee’s taxable income at the time they are made, but they do count toward the child’s $5,000 annual contribution limit.

How do you open a Trump Account?

Opening an account begins with an election process through the IRS, either by filing Form 4547 or using the online tool at trumpaccounts.gov. The Treasury then provides instructions to activate the account.

Over time, additional options are expected to become available. Financial institutions will be able to offer Trump Account products, but only after the initial Treasury account has been established and funded. Further guidance is expected as the program evolves.

Getting there starts… at birth

While guidance may continue to evolve, Trump Accounts shift investing from something that begins in adulthood to something that begins in childhood.

The July 4 launch is deliberate: establishing an early foundation for lifelong, low-cost investing—and reinforcing the role of long-term planning in pursuing financial independence for the next generation.