The federal government has officially opened the doors on Trump Accounts, a new class of tax-advantaged investment vehicle designed to give every eligible American child a financial head start. Authorized under the One Big Beautiful Bill Act of 2025 and launched on July 4, 2026, the program represents one of the more tangible shifts in U.S. family finance policy in recent memory.
The basic premise is straightforward: children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with a valid Social Security number, qualify for a one-time $1,000 federal seed contribution, claimed through IRS Form 4547. Parents and guardians can then contribute an additional $5,000 per year on their child’s behalf.
How the accounts actually work
Officially designated as 530A accounts, these are not savings accounts in the traditional sense. The funds are restricted to low-cost mutual funds or ETFs that track broad U.S. equity indices, think S&P 500 index funds rather than anything exotic.
Employer contributions are also permitted, though those are capped at $2,500 annually. Starting in 2028, the $5,000 private contribution limit will be adjusted for inflation.
