Starting July 4, 2026, American parents can begin funneling money into a new kind of tax-advantaged savings account designed specifically for children. Called “Trump Accounts,” these custodial vehicles were created under the One Big Beautiful Bill Act of 2025, and they represent the most significant expansion of youth-oriented investment policy in recent memory.
The headline feature: every eligible child born between January 1, 2025, and December 31, 2028, receives a one-time $1,000 government seed contribution.
How the accounts actually work
The structure is straightforward. Trump Accounts are custodial savings vehicles for children under 18. Family members, employers, and others can contribute up to $5,000 per year combined from all sources, with inflation adjustments kicking in after 2027.
Employers get a carve-out too. They can contribute up to $2,500 tax-free toward employees’ children’s accounts, which functions as a new kind of workplace benefit that didn’t exist before this legislation.
