The U.S. Department of the Treasury officially launched Trump Accounts nationwide on July 4, introducing a new tax-advantaged investment program for children as part of the country’s 250th Independence Day celebration.
Created through President Donald Trump’s tax and spending legislation, the free-to-open accounts — formally known as 530A accounts — are designed to help children build long-term wealth through investments in low-cost U.S. stock index funds.
The accounts function similarly to individual retirement accounts, allowing investments to grow tax-deferred until withdrawals are made later in life.
Children younger than 18 who are U.S. citizens and have a valid Social Security number are eligible to participate.
A parent, legal guardian, grandparent or adult sibling may open an account on a child’s behalf, with only one account permitted per child.
As part of the program’s pilot phase, children born between Jan. 1, 2025, and Dec. 31, 2028, are eligible for a one-time $1,000 contribution from the U.S. Treasury once an account is established.
Children born before 2025 may still open accounts but are not eligible for the federal deposit.
Some older children may qualify for additional private funding.
Under a $6.25 billion commitment from Michael and Susan Dell, children born between 2016 and 2024 who live in ZIP codes with median household incomes of $150,000 or less may receive a $250 contribution after their accounts are opened.
Family members and other individuals may contribute up to $5,000 annually to a child’s account. Employers may also contribute through an employer-sponsored program, while qualified contributions from charitable organizations and government entities may also be permitted under program rules.
Treasury officials said more than 50 companies have committed to offering employer contributions for employees’ children.
Several companies, including BlackRock, Chipotle, Mastercard, Robinhood and Uber, have also announced plans to participate in contribution programs.
Alongside the account rollout, The Treasury released the full version of the Trump Accounts mobile app, which allows families to open and manage accounts, monitor balances and investment performance, make contributions and access financial education materials.
The accounts are initially managed by Bank of New York Mellon, while the app was developed in partnership with Robinhood.
The app includes 15 interactive financial literacy modules covering topics such as saving, investing, compound growth and diversification.
Treasury said children would begin being able to track investment performance through the app beginning July 6.
Parents and guardians may establish an account by filing IRS Form 4547 and completing enrollment through the official Trump Accounts platform or mobile application.
Once an account is activated, contributions can begin immediately, and eligible children will receive any qualifying government or charitable deposits as accounts are processed.
Funds remain invested until the child reaches age 18, when the account converts to a traditional individual retirement account and becomes subject to IRA withdrawal rules.
Withdrawals for nonqualified purposes before retirement may be subject to taxes and penalties, although account holders may use funds for certain qualifying purposes, including higher education expenses, purchasing a first home or starting a business.
Financial professionals have offered mixed assessments of the new accounts.
Some note the federal seed contribution and long-term investment horizon could provide meaningful growth over time, while others argue that families saving primarily for college expenses may still find traditional 529 education savings plans more advantageous because of their tax treatment and broader investment options.
Treasury estimates approximately 1.5 million children born during the pilot period will qualify for the $1,000 federal contribution, while millions of other eligible children can open accounts and receive contributions from family members, employers and participating organizations.
Parents may continue enrolling eligible children after the July 4 launch, provided the child has not yet reached age 18.
