Trump Accounts Now Invest Kids Money in Stocks

Trump Accounts, the new custodial retirement savings accounts for children, officially opened on the Fourth of July, giving parents a fresh way to start building wealth for kids from birth. Anyone under 18 with a Social Security number qualifies, and the government is sweetening the deal for a specific group of newborns.

Children born between January 1, 2025 and December 31, 2028 who have a Social Security number and U.S. citizenship get an automatic $1,000 deposit from the Treasury Department when their account opens. That's the headline hook, but the accounts are built to grow well beyond that seed money, and the investment choice behind them says a lot about how Washington wants this money managed.

Who Can Contribute, and How Much

Kids who miss the $1,000 window because they were born too early or too late can still open an account and receive money from other sources. Parents, relatives and friends may contribute up to $5,000 a year in after tax dollars until the year the child turns 18. Employers that choose to take part can add as much as $2,500 annually. Companies, nonprofits, wealthy donors, and state or local governments are also allowed to pitch in.

One donation already dwarfs the rest. Back in December, Michael Dell and his wife Susan pledged $6.25 billion toward these accounts, enough to give roughly 25 million children $250 each. The Treasury Department said this past week that Trump Accounts can now also accept gifts of public stock, a move officials described as a way to make it easier for philanthropists to contribute. Under the rules, such stock gifts go to the Treasury first, which then transfers the value according to the donor's wishes, applicable law and Treasury guidance.

Where the Money Actually Goes

Every dollar that lands in a Trump Account at launch gets funneled into the State Street SPDR Portfolio S&P 500 ETF, ticker SPYM, as what the Treasury calls the