Archive · 23 Jul 2025
Trump Accounts: New Investment Accounts for Kids
Imagine a special savings account called a Trump Account, designed to help kids start saving and investing.
Parents can put in money, up to $5,000 a year, and it grows over time.
If your child is born between 2025 and 2028 and meets certain criteria, the government will add $1,000 to start them off.
When kids turn 18, they can use the money, but it's similar to retirement accounts, so they pay taxes when they take it out.
There are some exceptions, like for education or buying a home.
Trump Accounts are tax-advantaged investment accounts for children, launched under the One Big Beautiful Bill Act.
Parents can contribute up to $5,000 annually until the child turns 18, invested in a U.S. stock index fund.
Eligible children born between 2025 and 2028, with a Social Security number, receive a $1,000 government contribution.
Account funds can be accessed at age 18, with tax-deferred growth like a traditional IRA.
Withdrawals are taxed as regular income, with penalties for early withdrawal, except for certain expenses.
- Who
- Designed for children, with parents as contributors and the government offering a one-time contribution for eligible children.
- What
- New tax-advantaged investment accounts called 'Trump Accounts' for children.
- When
- Accounts are expected to become available in July, with eligibility rules for children born after 2024 and before 2029.
- Where
- These accounts will be available in the US.
- Why
- To give children a financial head start.
- Account Name
- Trump Account
- Purpose
- Tax-advantaged investment account for children
- Contribution Limit
- $5,000 annually (parents)
- Government Contribution
- $1,000 (for eligible children)
- Investment Type
- Diversified fund tracking a U.S. stock index
- Withdrawal Age
- 18
- Tax Treatment
- Tax-deferred growth, withdrawals taxed as income
- Eligibility
- US citizens born after Dec. 31, 2024, and before Jan. 1, 2029, with a Social Security number