What Are Trump Accounts—and How Can They Help Your Child Build Wealth?

Americans already use tax-advantaged accounts to save for retirement, education and healthcare. Trump Accounts apply that same proven approach to a new goal: giving your child a head start on long-term financial security.

Created by a law signed on July 4, 2025, these accounts let families invest in their children’s future through low-cost funds that grow tax deferred, and the federal government is chipping in. For families with children born between 2025 and 2028, the government will deposit $1,000 to get things started.
Here’s what you need to know.

Who Can Open a Trump Account?

Any child under 18 with a Social Security number can have a Trump Account.

A parent, legal guardian, or other authorized family member opens the account and manages the investment choices until the child turns 18. You can sign up through the IRS using Form 4547 or an online tool at trumpaccounts.gov.

A $1,000 Head Start from the Government

If your child is a US citizen born between January 1, 2025, and December 31, 2028, they’re eligible for a $1,000 deposit from the federal government—at no cost to you.

To receive it, an eligible parent or guardian simply needs to make an election through the IRS. The deposit will arrive no earlier than July 4, 2026, and it doesn’t count toward the annual contribution limit. It’s free money designed to help your child start building wealth from day one.

How Much Can You Put In?

Beyond the government’s initial deposit, families can contribute up to $5,000 per year to a child’s Trump Account. Grandparents, other relatives, and friends can pitch in too—the limit applies per child, not per contributor.

Contributions are not tax-deductible going in, but here’s the key benefit: the money grows tax-deferred. That means no taxes on investment gains year after year, giving your child’s savings more time to compound.

Your Employer Might Help Too

Some employers may offer Trump Account contribution programs as a workplace benefit. Under the new law, employers can contribute up to $2,500 per year toward an employee’s dependent’s Trump Account, and that money is excluded from the employee’s taxable income. Contributions from your employer also count toward the $5,000 annual limit on contributions.

This works a bit like a 401(k) match—but for your child’s future. If your employer offers this benefit, it’s worth taking advantage of. Ask your HR department whether a Trump Account contribution program is available.

In some cases, nonprofits or state and local governments may also contribute to a child’s account.

When Can Your Child Access the Money?

Trump Accounts are designed for the long term. The money is generally locked until your child turns 18, with only a few narrow exceptions. That might sound restrictive, but it’s actually a feature—it keeps the money invested and growing through the ups and downs of the market.
Starting in the calendar year your child turns 18, most of the special Trump Account rules no longer apply, and traditional IRA rules generally apply to the account. At that point, they’ll have the same flexibility as any IRA owner to manage their investments, make withdrawals, or keep the money growing for retirement.

Why This Matters for Your Family

The power of starting early can’t be overstated. Even modest contributions invested in low-cost index funds can grow significantly over time, thanks to compounding. A Trump Account gives families a tax-advantaged, structured way to start building wealth for the next generation.

Whether it’s the $1,000 government deposit, contributions from family members, or help from an employer, every dollar invested today has more time to grow. For millions of American families, that’s a meaningful opportunity to give their children a stronger financial foundation.