Trump Accounts launch with $1,000 federal boost for eligible kids

Trump Accounts are now open for enrollment, giving eligible families a new tax-advantaged savings option for children under 18. The program includes a one-time $1,000 federal pilot contribution for qualifying children born between 2025 and 2028, with applications handled through the IRS and TrumpAccounts.gov.

Why it matters: - Trump Accounts give families a new way to save for children with tax advantages and long-term investment rules. - The program includes a potential $1,000 federal contribution that could give eligible children an early head start. - The accounts are designed to encourage diversified, long-term investing rather than short-term speculation.

What happened: - Trump Accounts became available for enrollment and funding on July 4, 2026. - The program was created under the One Big Beautiful Bill Act. - The U.S. Department of the Treasury and the IRS are overseeing implementation. - Parents or other authorized individuals can establish an account for eligible children under age 18.

The details: - A one-time $1,000 federal pilot contribution is available for eligible children born between January 1, 2025, and December 31, 2028. - Eligible children must be U.S. citizens and have a valid Social Security number. - A Trump Account must be established by a parent or other authorized individual through the required election process. - Children born outside the pilot period may still be eligible for a Trump Account, but they do not qualify for the $1,000 federal contribution. - Family members, friends and other individuals may generally contribute up to $5,000 per year, subject to future inflation adjustments. - Employers may contribute up to $2,500 annually on behalf of an employee or an employee's dependent under applicable IRS rules. - All contributions remain subject to the program's federal limits. - While the beneficiary is a minor, funds generally must be invested in low-cost mutual funds or exchange-traded funds that track broad U.S. stock market indexes and meet federal requirements. - Investment earnings grow on a tax-deferred basis while the money stays in the account. - Withdrawals follow federal tax rules, and the account transitions to traditional IRA treatment when the beneficiary reaches adulthood under the program's rules. - Returns are not guaranteed, and account values will rise or fall with market performance. - Families can establish an account by completing IRS Form 4547, the Trump Account Election, electronically through an IRS Individual Online Account or through the enrollment instructions on the official website. - Families generally need the child's Social Security number, date of birth, address and an IRS online account for enrollment, and ID.me verification may be required. - The IRS says submitting the election generally takes only a few minutes, and families can track application status online. - Official information, eligibility details, enrollment instructions, IRS Form 4547 and FAQs are available at TrumpAccounts.gov. - Additional guidance is available directly through the IRS.

Between the lines: - The program's biggest near-term draw is the federal seed contribution, but the long-term value will likely depend more on ongoing contributions and compound growth. - The investment restrictions signal a policy push toward broad-market, low-cost investing for children rather than active trading. - Because the account rules affect taxes, withdrawals and investment choices, families may need professional advice before enrolling.

What's next: - Eligible families can begin the election and enrollment process now through the IRS or TrumpAccounts.gov. - Future inflation adjustments could raise the annual contribution cap over time. - Families should watch for additional IRS guidance as implementation continues.