On July 4th, the Trump Accounts officially came to life. Conceived one year ago, as part of the Working Families Tax Cuts (also known as the One, Big, Beautiful Bill), Trump accounts are tax-advantaged investment accounts for every baby born in the U.S. and for kids coming from lower-income families.
The best part for children is that the US Treasury Department is providing a $1,000 seed contribution to these accounts for babies born from 2025 through 2028. Older children can also use the accounts but are not eligible for the $1,000 seed money.
Contributions from parents and others will grow the funds over time to five-, six-, seven-, and even eight-figure amounts that can be used upon adulthood for education, work training, homeownership, or entrepreneurship. Or, the funds can simply keep growing until retirement.
The newly launched Trump Accounts app allows parents and children to track the growth of their funds over time. As U.S. Treasury Secretary Scott Bessent said, “Everyone is going to participate in the American Dream. I think we are at the edge of an innovation wave that we are seeing here.”
Trump Account Gains for Families
Here’s what the Trump Accounts provide American children and their families:
Stock Ownership from Day One – Millions of kids who would never have opened an investment account gain access to the stock market and the tremendous long-term financial gains. For now, all funds in a Trump Account will be automatically invested in a State Street fund (SPDR Portfolio S&P 500 ETF or SPYM).
Financial Literacy – Trump Accounts will teach children and parents about the basics of money, such as saving, investing, compound interest, and the stock market. The Treasury Department will provide families with 15 financial literacy modules to teach these concepts. Moms and dads can learn valuable financial information judgement-free, while kids gain knowledge that our educational system has refused to provide for generations.
Community Involvement – Parents, family members, churches, nonprofit organizations, companies, and government agencies can all make contributions to Trump accounts, up to $2,500 per year, beginning today, with a $5,000 annual cap.
Philanthropists have already committed to investing in the Trump accounts. Children from middle-class and lower-income households may be eligible for a $250 contribution from Dell Technologies founder Michael Dell and his wife, Susan. The commitment is estimated at $6.25 billion.
New Employment Benefits – Over 50 companies, including Bank of America, Comcast, Chipotle, JPMorgan, Intel, have committed to offering contributions to TrumpAccounts for children of their employees adding yet another new workplace benefit for American workers. As this program grows, we expect more employers to add this benefit as a way to attract or retain good workers.
3 Steps to Sign Up:
- Go to TrumpAccounts.gov.
- Download the Trump Accounts app.
- Use IRS Form 4547 to open an account. Fill out and submit the form through the app or through the secure IRS website.
- You will need to provide your Social Security Number and address.
- Your child will need a Social Security Number that matches his or her Social Security card and an address.
- Select Pilot Program Contribution election. That is the $1,000 contribution from Uncle Sam.
Try to make contributions such as monthly or on birthdays, graduations, and special occasions. Ask family and friends to do the same.
Track the growth of the Trump Account over time.
Just for fun, if not a single penny was ever contributed,
$1,000 invested at birth…
With 7% average returns…
- Becomes %6,000 at age 18…
- $15,000 at age 27…
- $243,000 at age 55…
- $490,000 at ag 65.
Maxing out the $5,000 contribution limit each year for a child yields,
- $271,000 at age 18…
- $742,000 at age 27…
- $13 million at age 55.
Bottom Line
The Trump Accounts are an investment in every child’s future thanks to the Working Families Tax Cuts. American households of all stripes should not miss out on this on-ramp into the blockbuster stock market and the new tools for financial literacy to guide them along the way.