Millions of American parents are rushing to open new Trump Accounts for their children as the federal government and major philanthropists roll out a program that promises at least $1,000 per eligible child and generous long‑term savings benefits.
How Trump Accounts Work
Under the Trump Accounts initiative, every U.S. child born between Jan. 1, 2025, and Dec. 31, 2028, is eligible for a new tax-advantaged savings account that starts with a $1,000 government deposit, as long as parents register the account.
Parents can begin opening these accounts in early 2026, with contributions allowed starting on Jul. 4, 2026, the date chosen to coincide with the nation's 250th anniversary.
The Treasury Department and IRS have created a new IRS Form 4547, which families can file with their taxes or through an online portal to claim the initial funding and set up the account in a child's name, according to KSTP.
Officials describe Trump Accounts as a kind of simple "IRA for kids," meant to help families start building wealth for education, housing, and retirement costs from the moment a child is born.
The law behind the program allows accounts for any eligible child under 18, with a $1,000 government deposit for children born after Dec. 31, 2024, and before Jan. 1, 2029.
Funds must be invested in low-cost stock index funds, giving families broad exposure to the stock market while keeping fees low.
Supporters say this structure uses the power of compounding over many years to turn a relatively small starting balance into meaningful savings in adulthood.
Read more: Tech Billionaire Couple Pledges $6.25 Billion To Fund Invest America Accounts for Children
Parents are hurrying to sign up because the rules also allow additional contributions from many sources, adding to the appeal of the new accounts.
Families can put in up to $2,500 of pretax income each year, and total yearly contributions from parents, children, relatives, friends, and employers can reach $5,000 per child, not counting some government and charitable donations, CBS News reported.
The Council of Economic Advisers has estimated that if the maximum amount is deposited each year, a Trump Account could grow to more than $1 million by age 28 and potentially tens of millions over a full working life, assuming steady investment returns.
Support, Donations, and Criticism
The program gained a major boost when philanthropists Michael and Susan Dell pledged $6.25 billion to fund millions of additional Trump Accounts, a move celebrated by the White House as a landmark private gift for children's savings.
President Donald Trump has promoted the initiative as a "pro‑family" policy that will help "millions of people across the U.S." and give children "a shot at the American dream."
Critics, however, question the cost, estimated in the tens of billions of dollars over the next decade, and argue that higher-income families may benefit most, since they are more likely to have spare cash to contribute and better access to financial advice.
Some policy analysts warn that families who cannot afford regular contributions may see only modest gains, even with the $1,000 seed money.
Still, early interest has been strong, and federal officials say they expect tens of millions of Trump Accounts to be created once the system is fully live, as parents seek to claim the free $1,000 and lock in potential long‑term gains for their children, as per USA Today.
