Trump Accounts Launch July 4: How They Work

Trump Accounts, the new tax deferred investment accounts for children, officially opened for contributions on July 4, letting parents, guardians and employers put money away for a child's future the same way adults use an IRA to save for retirement.

At a Glance

Contributions began July 4, the accounts also carry the formal name 530A account.
Children born between January 1, 2025 and December 31, 2028 get a $1,000 seed deposit from the Treasury Department.
Individuals can contribute up to $5,000 per child annually, not counting the government seed money or charitable gifts.
Bank of New York Mellon and Robinhood are handling the accounts at launch.
About 6 million people had signed up as of early July, according to the Treasury Department.

What a Trump Account Actually Is

The accounts trace back to last year's One Big Beautiful Bill Act, which set up this savings vehicle specifically for kids under 18. Treasury Secretary Bessent has described them as a kind of rainy day fund that children can draw on once they become adults. Emerson Sprick, who directs retirement and labor policy at the Bipartisan Policy Center in Washington, framed it a bit differently to CBS News, saying the accounts exist to help children begin building retirement assets as early in life as possible.

Either way, the mechanics are straightforward. Money goes in during what's called the growth period, which runs from the moment the account opens until the year the child turns 18. During that stretch, every dollar contributed has to go into mutual funds or ETFs that track a broad index like the S&P 500, and those funds need to carry fees above 0.1 percent. Once the beneficiary hits 18, the account converts and starts behaving like a standard IRA.

Setting One Up and Who Manages the Money

Parents can open an account through the Trump Accounts app or at trumpaccount.com. The Trump administration says every dollar contributed gets invested in a broad stock market index, and the app gives families a running view of how the portfolio is performing.

At launch, Bank of New York Mellon is administering the accounts alongside the online brokerage Robinhood. That doesn't lock families in, though. During the growth period, an account can be rolled over to a different financial institution for the same child, according to the Bipartisan Policy Center.

A parent types on a laptop at home with a baby photo visible in the background.

Contribution Limits and Who's Chipping In

Setting aside the $1,000 government contribution and any charitable donations, individuals can put in up to $5,000 per child each year. Employers can contribute too, but their portion is capped at $2,500 annually, and whatever they give counts toward that same $5,000 ceiling.

Contribution Source	Annual Limit
Parents, guardians, other individuals	Up to $5,000 per child (combined with employer gifts)
Employers	Up to $2,500 per child, counts toward the $5,000 cap
U.S. Treasury (children born Jan. 1, 2025 to Dec. 31, 2028)	$1,000 one time seed deposit

Private donors have already jumped in. In December 2025, Michael and Susan Dell pledged $250 each to 25 million American children. That gift specifically targets kids born before 2025 who are under 10 and therefore don't qualify for the Treasury's $1,000 seed money, giving those older children a comparable head start.

Frequently Asked Questions

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

Children born between January 1, 2025 and December 31, 2028 qualify for the one time $1,000 deposit from the Treasury Department once their account is opened.

Can a Trump Account be moved to a different bank or brokerage?

Yes. During the growth period, before the beneficiary turns 18, the account can be rolled over to a Trump Account at another financial institution for the same child.

What happens to the account once the child turns 18?

The account transitions out of the growth period and begins operating like a traditional IRA.

How much can employers contribute to a child's account?

Employers can contribute up to $2,500 per child each year, and that amount counts toward the overall $5,000 annual contribution limit.

What to Watch as Enrollment Grows

With roughly 6 million people already signed up in the first days after launch, the real test will be whether contributions keep flowing beyond the initial rush and whether more employers and donors follow the Dells' lead. The next few years, as the pool of eligible children born through 2028 fills out, should show whether this becomes a routine part of family financial planning or stays a niche benefit.