Trump Accounts — the tax-advantaged investment accounts for American children created under the One Big Beautiful Bill Act — officially launched on July 4, with over 6 million families already registered and more than $1,000 in government seed money landing in the accounts of qualifying newborns as President Trump rang the opening bell of the New York Stock Exchange from the Oval Office to mark the moment.
Here is what parents need to know. Any American child under 18 with a valid Social Security number is eligible for a Trump Account. Children born between January 1, 2025, and December 31, 2028, automatically receive a one-time $1,000 contribution from the U.S. Treasury, invested in a low-cost S&P 500 index fund managed by Bank of New York Mellon — the designated financial agent for the program. That $1,000 does not count against the annual contribution limit. All other contributions — from family members, employers, philanthropists, or charities — are capped at $5,000 per child per year. Employers may contribute up to $2,500 annually per employee, split across multiple children if needed. The money grows tax-deferred, withdrawals are not permitted until the child turns 18, and at that point the account converts into a traditional IRA.
"Trump Accounts are about giving every American child a stake in America's future and getting some of the upside. There could be no better way to begin our 250th year." — President Donald Trump
Parents can open an account by filing IRS Form 4547 online at trumpaccounts.gov or through the Trump Accounts mobile app. Children born before 2025 who are under 18 are eligible for accounts with the same features but without the $1,000 government seed money — though they may qualify for philanthropic contributions. Michael and Susan Dell have pledged $6.25 billion — $250 per child — for the first 25 million applicants aged 10 and under in zip codes with a median household income of $150,000 or less. Ray and Barbara Dalio have pledged $75 million for children in Connecticut. SpaceX president Gwynne Shotwell is contributing SpaceX stock to accounts for more than two million children. More than 50 major companies — including Uber, Intel, IBM, Nvidia, Micron, and Robinhood — have committed to matching contributions for employees' children.
The Council of Economic Advisers estimates that the $1,000 seed money alone, with no additional contributions and assuming a 10.5% annual S&P 500 return, would grow to approximately $5,800 by age 18. With the maximum annual $5,000 contribution added, the CEA projects the account could reach $308,800 at 18 — and Treasury Secretary Scott Bessent has noted that compound growth over a lifetime could, in the right market conditions, produce accounts worth hundreds of thousands of dollars by retirement age.
After age 18, Trump Accounts function like traditional IRAs. Early withdrawals before age 59½ carry a 10% penalty with exceptions for qualified first-time home purchases, higher education costs, and medical expenses. After-tax contributions can be withdrawn tax-free. Financial advisors note that 529 college savings plans and other investment vehicles may offer certain tax advantages Trump Accounts do not, and parents may want to consult a financial planner before choosing how to allocate savings across account types.
Trump Accounts represent one of the most direct expressions of an ownership-society philosophy in recent American policy history — giving every child, regardless of family income, a starting stake in the American economy. The private-sector response has been extraordinary, with billionaires, corporations, and foundations collectively pledging billions to ensure the accounts reach children whose families cannot afford to maximize contributions on their own. The program is not perfect and will not close the wealth gap on its own — but giving every American child a share in the country's future is a genuinely conservative idea whose time has come.