This weekend, the Trump administration is planning to roll out one of its most ambitious programs yet: Trump Accounts. Tied to America’s 250th birthday, the program is set to launch on July 4, giving around 1.5 million American babies $1,000 to help with their future financial independence.
The program allows parents and legal guardians of children born during President Trump’s second term to open savings accounts, dubbed Trump Accounts, and receive $1,000 from the government. The accounts follow a 2025 federal tax law that allows a new type of tax-advantaged savings account, creating a path for young children to build wealth.
That amount serves as seed money that, in addition to future deposits, is invested in the stock market via private firms to grow alongside the child. Each Trump Account is established in the child’s name, with a parent or guardian acting as custodian until the child turns 18. Withdrawals are strictly prohibited before the 18-year mark. Once the child is 18, the account automatically operates under traditional IRA rules. From that point forward, the account holder can make penalty-free withdrawals for certain life expenses, such as college tuition, first-time home purchases, or starting a business. However, because it functions as a traditional IRA, ordinary income taxes still apply to all withdrawn funds.
Children eligible for the account and its seed money must be born between January 1, 2025, and December 31, 2028, be U.S. citizens, and have a Social Security number. But those born outside the time frame and still under the age of 18 can also apply for an account. According to USA Today, around 5 million individuals younger than 18 have signed up for a Trump Account. While the core account features remain the same, those who fall outside the eligible birthday window will not receive the initial government seed money.
Private donors have also jumped in on contributions, some of which may be claimed by those born outside of the time frame. For instance, children 10 or younger in qualifying zip codes may be eligible for a $250 charitable deposit by the Michael & Susan Dell Foundation.
Once the Trump Account is active on or after July 4, families and employers may begin contributing to it, with a $5,000 annual limit per child. The limit is expected to be adjusted for inflation in the years to come.
Parents and guardians looking to set up an account may do so by filing an IRS Form 4547 directly via the IRS website or by visiting TrumpAccounts.gov. For those who have already signed up, they’ll need to complete their account activation through the official app or the Trump Accounts website before the account can start to accept contributions.