A New Kind of Savings for Kids
President Trump announced a new signing‑up sheet on Tuesday for what he calls “Trump accounts.” These accounts are designed to give young Americans a starter fund when they hit 18. Under the Big Beautiful Bill, children born between January 1, 2025 and December 31, 2028 will receive an initial $1,000 that sits in a tax‑deferred investment vehicle.
In his briefing, the president said, “Trump accounts will be the first, I guess, you could say, real trust funds for every American child.”
The program has already attracted big donors. Michael and Susan Dell pledged $6.25 billion on Tuesday, earmarked to provide $250 to every child born before 2025 who is aged 10 or younger.
How to Open a Trump Account
The new savings accounts become available to parents and guardians through IRS Form 4547—a reference to Trump’s presidential numbers. A registration platform on a new government website will allow families to complete the form, with the Treasury Department promising to follow up by May 2026.
From July 4, 2026, families, employers, charities, or government bodies can contribute up to $5,000 a year per child, all invested exclusively in low‑cost U.S. equity index funds that encourage long‑term growth. The official Trump Accounts X profile confirms these details.
More information, including how to register, goes live on trumpaccounts.gov starting December 17.
How the Accounts Work
When a baby is born, the government automatically opens a savings file and adds the initial $1,000. The account then grows like an IRA, with contributions kept within a low‑fee U.S. index fund selection. Parents or guardians may add up to $5,000 annually until the child turns 18, while employers may contribute up to $2,500.
These funds remain untouched until the beneficiary turns 18, at which point they can be withdrawn. The money can be used for college, starting a business, buying a first home, or left to continue growing as an IRA.
The program has no income restrictions; any child with a Social Security number and aged 18 or younger can open an account, though the initial $1,000 seed is limited to those born in 2025‑2028. Those who miss the seed can still open an account and start investing.
When Will the Money Be Accessible?
Withdrawals are not allowed until the child reaches legal adulthood. Once 18, the parent/guardian can use the balance for education, entrepreneurship, real estate, or simply let it accumulate under the same tax‑deferred rules.
That’s the gist of President Trump’s initiative to help American children build a secure financial future.
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