You can start contributing to a Trump Account starting July 4. Here's what to know.

By

July 2, 2026 / 5:00 AM EDT

/ CBS News

Add CBS News on Google

Americans can begin contributing to a Trump Account on July 4, when the new tax-deferred investment accounts officially launch.Starting Saturday, parents, guardians, employers and other contributors can deposit money into a child's Trump Account, also known as a 530A account. Children born between Jan. 1, 2025, and Dec. 31, 2028, who open an account will also receive a $1,000 Treasury Department contribution invested in the stock market.Created under last year's One Big Beautiful Bill Act, Trump Accounts are designed to help children under 18 build savings, similar to how adults use individual retirement accounts to save for retirement. "These accounts are in the lane of helping children start to accumulate retirement assets from as early as possible," Emerson Sprick, the director of retirement and labor policy at the Bipartisan Policy Center, a Washington, D.C.-based think tank, told CBS News.U.S. Treasury Secretary Bessent has touted the accounts as a "rainy day fund" kids can use when they reach adulthood. Six million people have signed up so far, according to a Treasury Department spokesperson.How do Trump Accounts work?Trump Accounts are designed to help children start investing. During the "growth period" — between when the account is created and the year the beneficiary reaches age 18 — contributions must be invested in mutual funds or exchange-traded funds, or ETFs, that track large indexes such as the S&P 500 and have fees or expenses higher than 0.1%. After that time period, the account will operate like a traditional IRA.Bank of New York Mellon will initially administer Trump Accounts in partnership with online brokerage firm Robinhood. However, the accounts can be rolled over to a Trump Account at another financial institution for the same beneficiary during the "growth period," according to the Bipartisan Policy Center.