Understanding Trump Accounts: A Comprehensive Guide for Parents

Get an in-depth understanding of Trump Accounts, a new savings initiative for children launched by the Trump administration. Learn about the benefits, who can contribute, and how to apply.

Introduction to Trump Accounts

Announced during his State of the Union address, President Donald Trump introduced Trump Accounts, a groundbreaking savings program for children. Set to begin this summer, this initiative has garnered significant interest, with millions of children already signed up, according to Trump administration officials.

The Huge Perk for Babies Born Between 2025 and 2028

Babies born from 2025 to 2028 receive an exciting advantage: a $1,000 deposit into their Trump Account from the federal government. This initiative has also seen massive support from major companies pledging contributions. The potential for these accounts to grow is substantial, with balances possibly exceeding $100,000 by the time the child turns 18.

What are Trump Accounts?

Trump Accounts are tax-advantaged investment accounts targeted towards children under 18. Established under Trump’s One, Big, Beautiful Bill Act, these accounts receive a $1,000 kick-start from the Treasury Department for babies born from Jan. 1, 2025, to Dec. 31, 2028. Only U.S. citizens are eligible for this program. The government will invest the money in a suite of low-cost index funds, and it is estimated that just the $1,000 deposit could grow to over half a million dollars by the time the account holder reaches retirement age.

Who can Contribute to Trump Accounts?

Parents, guardians, friends, and companies can all contribute to a child’s Trump Account. Each child can receive up to $5,000 per year, adjusted for inflation starting after 2027. Employers can contribute up to $2,500 every year. Companies such as JPMorgan Chase, Intel, and Steak ‘n Shake have pledged to match the government’s contribution of $1,000 for employees’ children born from 2025 to 2028. Philanthropists Michael and Susan Dell have also pledged a substantial $6.25 billion to supplement the Trump Accounts.

How can the Funds be Used?

Children can access their Trump Accounts when they turn 18, and can use the funds for education, first home purchases, or starting a business amongst other permitted expenses, without incurring penalties. The White House has stated that these accounts will be treated like traditional IRAs once the account holders reach adulthood.

How to Apply for a Trump Account

Parents can apply for a Trump Account for their children by filing IRS Form 4547 along with their tax returns, or directly on the official Trump Accounts website: trumpaccounts.gov. Parents and guardians who have signed up their children will be contacted starting May with information to finalize the account setup, and the program officially launches on July 5.