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Trump Accounts officially launched on July 4.Any child under 18 is eligible for an account, but only kids born between 2025 and 2028 will qualify for the $1,000 government benefit.A year after being signed into law with the One Big Beautiful Bill Act, the Trump Accounts are now live.The investment accounts for kids, administered by parents until the child turns 18, officially went live on July 4. Some children's accounts will also receive $1,000 in "seed" money from the government, depending on their birth year."Trump Accounts are about giving every American child a stake in America's future and getting some of the upside," President Donald Trump said at the launch event on July 6. "There could be no better way to begin our 250th year."Here is what you need to know about the accounts:How do Trump Accounts work?Trump Accounts are savings accounts invested in low-cost index funds, and withdrawals are generally not allowed until the kid turns 18 years old. Contributions from non-government sources are limited to $5,000 per child per year.Anyone under 18 years old is eligible for an account, but only kids born between 2025 and 2028 will get a $1,000 seed payment from the government. It is owned by the child but administered by the parent until the child turns 18 at which point it converts into a traditional IRA.How do you open a Trump Account? Parents can file IRS Form 4547 online at trumpaccounts.gov. The form will ask for dates of birth, Social Security numbers and contact information. A mobile app for Trump Accounts also has the form.When will the $1,000 land in your Trump Account? The seed money landed in the accounts of over 500,000 American children on July 4, Trump said.Who actually owns a Trump Account? The Trump Account is owned by the child but administered by an adult until the child turns 18, according to Fidelity Investments. Nicki Minaj says she's not flipping on Trump supportPresident Donald Trump hosted a Trump Accounts summit where Nicki Minaj and other CEOs and companies pledged their support.Who qualifies for a Trump Account? All U.S. citizens born in the years 2025 to 2028 qualify for Trump Accounts with the $1,000 benefit. They must have a Social Security number. What about Trump Accounts for kids under 18?American children born before 2025 who are under 18 will also be eligible for Trump Accounts, with the same features but with no $1,000 seed money from the federal government. Those accounts may still be eligible for other government or charitable contributions. For example, Michael and Susan Dell pledged $6.25 billion total, in $250 contributions for the first 25 million applicants for children up to age 10, with some other restrictions. (Check your child's eligibility here.)Only one Trump Account may be opened per child. When can you withdraw the money? IRS rules say you can take distributions from a Trump Account on Jan. 1 of the year you turn 18. Withdrawals before that are highly restricted, according to Fidelity.But that guidance may change to allow withdrawals only after the child’s 18th birthday, said Rita Assaf, vice president of retirement offerings at Fidelity. The reason: A child who hasn’t turned 18 doesn’t have the same legal rights as an adult. From that point, Trump Accounts could work much like Individual Retirement Accounts. IRA rules generally penalize withdrawals before age 59½, with exceptions that include a qualified first-time home purchase, higher education costs and medical expenses. After age 59½, you can withdraw IRA funds without penalty. Who can contribute to a Trump Account? Contributions can come from individuals, employers, governments, philanthropists and charities − pretty much anyone. How much can be contributed to a Trump Account? Contributions max out at $5,000 a year. But the one-time government “seed” contribution doesn’t count toward the annual limit, nor do contributions from governments and charities. An employer may contribute up to $2,500 a year per employee, money that may be split among multiple children. Employees can divert pretax pay into a Trump Account. Those contributions count toward the $5,000 annual limit. The annual limits are indexed to inflation and will rise over time. Contributing: Medora Lee, USA TODAYKinsey Crowley is the Trump Connect reporter for the USA TODAY Network. Reach her at KCrowley@usatodayco.com. Follow her on X (Twitter), Threads, Bluesky and TikTok.
