By Kashmira Konduparty
Americans will be able to begin contributing to newly created “Trump Accounts” starting July 4, launching a federal investment program designed to help children build long-term savings through tax-deferred accounts backed by government and private contributions.
The accounts, officially known as 530A accounts, were created under the One Big Beautiful Bill Act and are available to U.S. citizens under the age of 18 with a valid Social Security number. Parents or legal guardians must open and manage the accounts until the child reaches adulthood. Contributions can be made by parents, relatives, employers and other eligible donors.
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A key feature of the program is a one-time $1,000 federal contribution for children born between Jan.1, 2025, and Dec. 31, 2028. The Treasury Department said the funds will be invested in low-cost U.S. equity index funds intended to grow over time. Families with older children may still open accounts, but those children do not qualify for the federal seed deposit.
Individuals may contribute up to $5,000 annually to a child’s account, with the limit adjusted for inflation beginning in 2028. Employer contributions are also permitted under the program, and donations from certain charitable organizations and government entities are not counted toward the annual contribution cap.
Money in the accounts grows on a tax-deferred basics. Beginning at age 18, beneficiaries may withdraw portions of the funds for qualifying expenses such as higher education, purchasing a first home or starting a business. Withdrawals for non-qualified purposes may be subject to taxes and penalties, while remaining balances can continue to grow for retirement.
Companies including Goldman Sachs, JPMorgan Chase, Nvidia, IBM and Bank of America have pledged contributions for eligible employees’ children, while Michael and Susan Dell previously announced a multibillion-dollar philanthropic commitment to provide additional deposits for millions of children who are not eligible for the federal $1,000 contribution.
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The accounts are said to encourage financial literacy and long-term investing while helping families build generational wealth.
The Treasury Department has designated Bank of New York Mellon to administer the accounts, with families able to activate and manage them through the official Trump Accounts app or website. Officials have also warned families to be cautious of scams and to use only official government channels when opening or accessing accounts.