Trump Accounts for kids: Eligibility, $1,000 deposit
U.S. President Donald Trump speaks during an event to celebrate the launch of “Trump Accounts” in the Oval Office at the White House on July 6, 2026 in Washington, DC, USA.
Evan Vucci | Reuters
Trump Accounts officially launched on July 4, offering a new tax-deferred investment option for children. Unlike 529 college savings plans and other accounts designed for education or short-term expenses, these accounts are geared towards retirement and aim to help build long-term wealth.
“Trump Accounts level the playing field by allowing every parent to invest in their children’s future, not just wealthy families with trust funds,” a Treasury spokesperson said in an email to CNBC.
This guide explains the key features of Trump Accounts, including eligibility requirements, free money available, and strategies families can use to maximize growth.
Some details are still to come. Please check back for updates.
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Trump Accounts, also known as 530A accounts, are a type of individual retirement account for children created under President Donald Trump’s “big, good bill.”
The accounts work like an IRA, with some exceptions. Trump Accounts can receive contributions from multiple sources, such as family or employers, and the funds grow tax deferred.
Who qualifies for a Trump Account?
Trump Accounts are available to all children under 18, provided the child is a U.S. citizen and has a valid Social Security number. An authorized adult, including a parent, legal guardian, grandparent, or sibling, may open an account on behalf of a qualifying child.
A child welfare agency that is the legal guardian of a state, territorial, or tribal government Open a Trump Account for an eligible child in foster care, as directed by the Treasury.
Who gets the $1,000 federal deposit?
Children born between 2025 and 2028 can receive a one-time benefit. $1,000 deposit from the U.S. Treasury Department as part of a pilot program designed to jump-start long-term savings.
This seed money is automatically deposited once an account is opened and verified. Families can track account activity with the Trump Accounts app, designed in partnership with Robinhood.
Trump Accounts app.
Courtesy: US Treasury
What is Dell’s $250 contribution?
Technology CEO Michael Dell and wife Susan pledge $6.25 billion to raise additional income $250 For children born between 2016 and 2024 who live in zip codes where the median income is $150,000 or less.
This money is targeted low income childrenHowever, according to a fact sheet, children over the age of 10 can also benefit if funding remains available after initial registrations. Dell Foundation.
How to open a Trump Account?
Parents or guardians By filing IRS Form 4547 with your tax return, or TrumpAccounts.gov. The deadline for registration is the year before the child turns 18.
After a huge promotional effort in the lead-up to the official launch, 6.5 million children had been registered, according to the Treasury’s calculation on 10 July.
Initial activation emails will only come from no-reply@TrumpAccounts.Treasury.gov. Future communications will be made through the Trump Accounts app or via email addresses ending @trumpaccount.com.
Always access your child’s Trump Account from the official app or by typing TrumpAccounts.gov Treasury guidance says it’s sent directly to your browser.
Parents, guardians, grandparents and others can collectively contribute up to $5,000 per year per child in after-tax dollars until the year before the beneficiary turns 18. Annual contribution limit indexes for inflation after 2027.
Employers can also contribute: $2,500 per employee This is part of the $5,000 annual limit and will not count as taxable income, according to the IRS. This figure is also adjusted for inflation after 2027. A growing number of companies have promised to seed the accounts of employees’ children.
Additionally, qualifying charities and state and local governments may make contributions that do not count against the $5,000 limit.
As of July 10, families have collectively contributed nearly $125 million since the launch, according to a Treasury spokesperson.
How are Trump Accounts taxed?
Contributions to a Trump Account by parents, guardians, grandparents, or others are a Gift tax reporting requirement according to the IRS and Treasury Department. These contributions will count towards the annual exclusion of gifts of $19,000 per recipient for 2026.
Trump Account funds are tax deferred until later withdrawn. Because Trump Accounts may contain a mix of pre-tax and after-tax contributions, distributions may still be partially taxable. Withdrawn earnings will be taxed as ordinary income, the Treasury said.
Here’s a breakdown:
- Direct parental contributions – after tax
- Pilot program $1,000 — before tax
- Employer contributions – before tax
- Other qualified contributions – before tax
- Future contribution increase — pre-tax
It is generally not possible to withdraw Trump Account funds before age 18. limited exceptionsCertain carryover amounts include distributions upon death and excess contributions, according to the IRS.
Once the child turns 18, the standard rules for traditional IRAs apply. Withdrawals before age 59½ are generally subject to income taxes and a 10% penalty. Yes some penalty exceptionssuch as distributing higher education expenses or purchasing a first home.
What are the investment options?
Families looking to create long-term savings for their children can consider a number of options, including: A 529 college savings plan is a custodial account for minors under the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act, also known as: UGMA and UTMAor a Roth individual retirement account if the child earns income.
When it comes to paying for college, experts generally view 529 plans as the best way to save money due to tax advantages and higher contribution limits, but which investment vehicle makes the most sense depends on the family’s specific goals and time horizon.
“Trump Accounts and 529 plans are complements, not competitors,” a Treasury spokesperson told CNBC. “While 529s target families with education expenses, Trump Accounts mark a historic leap in flexibility, allowing all Americans to save, invest and build wealth over the long term.”
— Kate Dore contributed to this report.
