Trump Accounts for Newborns to Accept Stock Donations

Trump accounts, the government backed savings accounts for newborns created under President Trump's tax and immigration law, will let individuals and companies donate shares of publicly traded stock directly into a child's account starting this weekend, the Treasury Department announced.

At a Glance

• Trump accounts launch Saturday, timed to the United States' 250th anniversary
• The federal government contributes $1,000 for each child born from 2025 through 2028
• Donors can now transfer publicly traded shares to the Treasury for deposit into eligible children's accounts
• More than 6 million families have signed up, but only 1.4 million qualify for the federal seed money
• Parents set up the accounts themselves using IRS Form 4547

How the Stock Donations Will Work

Starting this weekend, anyone, whether a private individual or a corporation, will be able to hand over shares of stock to the U.S. Treasury with instructions that the value flow into a Trump account for an eligible child. The department says the shares will be deposited according to the donor's wishes, existing law, and Treasury guidance. Treasury Secretary Scott Bessent framed the move as a way to open the door to bigger private contributions, saying it gives generous donors and companies a straightforward channel for supporting kids' long term savings.

Some companies and philanthropists have already stepped in with extra money on top of the government's contribution, though the announcement did not detail specific dollar amounts tied to the stock donation option itself.

Setting Up an Account

The accounts do not appear automatically. A parent or guardian has to fill out a one page IRS form, officially titled Form 4547, a nod to Trump as both the 45th and 47th president. Whoever opens the account also decides how the money gets invested for as long as the child remains a minor.

On Wednesday, the Treasury rolled out five investment funds where the initial government cash contribution can be parked. These funds mirror some of the most closely watched Wall Street indexes and rank among the most heavily traded exchange traded funds among everyday retail investors. Interestingly, Trump himself holds between $7 million and $35.1 million spread across those same types of instruments, based on his own annual financial disclosures, and he added as much as $21 million to those holdings earlier this year.

Who Actually Benefits

The enrollment numbers tell an important story. Treasury says over 6 million families have signed up for Trump accounts, yet only 1.4 million of those children actually qualify for the government's $1,000 seed deposit, since that money is reserved for kids born between 2025 and 2028. Everyone else who opens an account is mostly investing their own cash, though they still get the tax perks that come with the program.

Those tax perks come with tradeoffs. Trump accounts don't get taxed until the child turns 18, though state taxes may still apply along the way. Compared with other youth savings vehicles already on the market, the tax treatment here is actually less generous. What Trump accounts offer instead is flexibility: fewer restrictions on how the money can eventually be spent once the account holder comes of age.

Frequently Asked Questions

When do Trump accounts officially start?

The accounts launch Saturday, coinciding with the 250th anniversary of the United States.

Who is eligible for the $1,000 government contribution?

Only children born from 2025 through 2028 qualify for the federal seed money, according to the Treasury Department.

Can someone besides a parent donate to a Trump account?

Yes. Individuals and corporations can now transfer publicly traded stock to the Treasury, which will deposit the value into eligible children's accounts based on the donor's instructions.

How are Trump accounts taxed?

Funds are not taxed until the account holder turns 18, though state taxes may apply, and the overall tax treatment is less favorable than some other youth savings plans, even though the accounts carry fewer spending restrictions.

What Comes Next

With millions of families already enrolled but a relatively small slice actually eligible for free government money, the real test will be whether the new stock donation option draws meaningful private and corporate dollars into these accounts once they go live this weekend.