The new Trump Accounts program establishes tax-advantaged investment accounts for children — with a $1,000 “seed” contribution from the U.S. government for eligible newborns.
Parents or guardians, and optionally other family members, employers, or charities, can contribute up to $5,000 per year per child (with up to $2,500 of that possibly coming from an employer) to help the account grow over time.
The money is invested in low-cost U.S. stock-index funds (e.g., broad-based mutual funds or ETFs), and cannot be withdrawn until the child reaches age 18; at that point the account generally functions like a traditional retirement account (IRA). (Forbes)
Michael and Susan Dell, of the Dell Computer fortune, made headlines this week when they announced a $6.25 billion donation to the new Trump Accounts for infants. An estimated 25 million children will benefit that single donation.
Many parents may be asking, “What is a Trump Account and can my child benefit?”
Here’s how it works:
Launched under the recently passed One Big Beautiful Bill Act (OBBBA), Trump Accounts are meant to give children a financial head start from birth — automatically investing in the stock market on their behalf.
For children born between January 1, 2025 and December 31, 2028, the government will deposit $1,000 into a new Trump Account if parents/guardians file the proper election form.
The account is then managed by the child’s guardian — but invested broadly in U.S. equities, aiming to grow over decades via compounding.
What’s behind the program?
Supporters argue Trump Accounts:
Offer every American child — regardless of family income — a chance to build long-term financial assets from birth.
Promote financial literacy and long-term saving habits by exposing families early to investing and compounding returns.
Provide a flexible multi-purpose nest egg — usable for higher education, starting a business, buying a first home, or other major expenses when the child becomes an adult.
According to estimates by the administration’s economists, a baby born in 2026 whose guardians contribute the annual maximum could see the account reach roughly $303,800 by age 18—and over $1 million by age 28 under optimistic stock-market growth assumptions.
How parents can enroll their child
Check eligibility: The child must be a U.S. citizen, under 18, and have a Social Security number. For the $1,000 seed benefit, birth must fall between Jan. 1, 2025 and Dec. 31, 2028.
Make the official election: A parent or legal guardian must file the required election via the appropriate form. According to the official guidance, that is IRS Form 4547.
Wait for the account setup: Once the election is filed, the Treasury will establish the account and deposit the initial $1,000 (for eligible babies).
Begin contributing (optional): Starting July 4, 2026, guardians — or other approved contributors (parents, relatives, employers, charities) — may add up to $5,000 per year (with employer contributions capped at $2,500).
Let the account grow: Funds are invested in low-cost U.S. stock index funds. Withdrawals will generally only be allowed once the child turns 18 (then treated like a traditional IRA), with options for education, home purchase, business startup, or other qualified uses.