This is an IRA for children
On Tuesday, President Trump unveiled a registration sheet for a new savings account aimed at providing young Americans with initial funds once they reach adulthood. This initiative, dubbed the “Trump Account,” is part of the recently passed Big Beautiful Act.
The program is designed for those born between January 1, 2025, and December 31, 2028, promising them an initial deposit of $1,000 into a tax-deferred investment account.
“The Trump account will be the first real trust fund, so to speak, for every American child,” the president remarked to the press.
Significantly, this announcement coincides with the pledge of a groundbreaking $6.25 billion from Michael and Susan Dell towards the initiative. This funding will also translate to a $250 contribution for accounts belonging to children aged 10 and younger who were born prior to 2025.
How can I open a Trump account?
Parents and guardians will be able to set up these tax-deferred investment accounts using a new IRS form called Form 4547, named after the president’s numbers. Registration sheets will be accessible on a government website dedicated to this program, with plans for the Treasury to reach out to registrants by May 2026.
“From July 4, 2026, families, employers, charities, and governments will be able to contribute up to $5,000 a year for investment in low-cost U.S. stock index funds to ensure simple and sustainable growth,” according to Trump’s official profile.
Additional details on how to enroll will be posted on the Trump Account website on December 17.
How does the Trump account work?
Upon a child’s birth in America, the government will create a one-time deposit account with an initial $1,000. Parents and guardians can contribute as much as $5,000 annually to the account until the child turns 18. Additionally, employers can add up to $2,500.
The money contributed is directed to a low-cost U.S. stock index fund, functioning similarly to an IRA, and will accumulate value over the years.
Who is eligible to have a President Trump account?
Any individual under 18 with a Social Security number can open a Trump account. It’s worth noting that the Treasury will only provide the initial $1,000 to children born between 2025 and 2028, although anyone can open an account and invest their funds, regardless of eligibility for the seed money.
Importantly, there are no income restrictions for this initiative.
When can my child access the funds?
Withdrawals are off-limits until the beneficiary turns 18. After that point, the account will transition into what resembles a personal retirement fund.
Once they reach legal adulthood, the funds can be used for a variety of purposes, such as education, starting a small business, or purchasing a first home. Alternatively, the beneficiary may opt to leave the money in the account, allowing it to continue growing as an IRA.
