A Trump Account is a new tax deferred investment account for children under 18 that officially opened for contributions on July 4. Parents, relatives, employers and other donors can now put money into these accounts, which work much like a starter individual retirement account for kids.
At a Glance
- Also called a 530A account, created under last year's One Big Beautiful Bill Act
- Children born between January 1, 2025 and December 31, 2028 get a $1,000 seed contribution from the Treasury Department
- Annual contributions capped at $5,000 per child, with employer contributions limited to $2,500
- Bank of New York Mellon and Robinhood are the initial administrators, though accounts can later move elsewhere
- About six million people had signed up as of the launch, according to the Treasury Department
How the accounts actually work
During what officials call the growth period, the stretch from account opening until the year the child turns 18, money inside a Trump Account has to sit in mutual funds or ETFs tracking broad indexes like the S&P 500. Those funds also have to charge fees above 0.1%. Once the beneficiary hits 18, the account converts into something resembling a traditional IRA, with the same kind of tax treatment adults are used to.
Emerson Sprick, who directs retirement and labor policy at the Bipartisan Policy Center in Washington, described the accounts as a way to get children building retirement style savings as early as possible. Treasury Secretary Bessent has framed them differently, calling the accounts a rainy day fund that kids can tap once they reach adulthood.
Parents open accounts through the Trump Accounts app or at trumpaccount.com. Deposits get automatically invested in a broad stock market index, and the app shows account holders how their portfolio is performing over time.
Where to set one up and who administers it
Bank of New York Mellon is handling account administration at launch, working alongside the online brokerage Robinhood. That pairing won't be permanent for everyone, though. The Bipartisan Policy Center notes that families can roll their Trump Account over to a different financial institution for the same child during the growth period, so the initial provider isn't a lifetime commitment.
Contribution limits and outside donations
| Contribution type | Annual limit | Notes |
|---|---|---|
| Individual or family contributions | Up to $5,000 per child | Excludes government seed money and charitable gifts |
| Employer contributions | Up to $2,500 per child | Counts toward the $5,000 annual cap |
| Treasury seed contribution | $1,000 one time | Only for children born January 1, 2025 through December 31, 2028 |
Outside donors have already started chipping in. Philanthropists Michael and Susan Dell pledged in December 2025 to give $250 apiece to 25 million American children. That money is aimed specifically at kids born before 2025 who are under 10 and therefore don't qualify for the government's $1,000 contribution.
What families should weigh before opening one
The accounts lock money into index style investments during childhood, which limits flexibility compared with a regular custodial brokerage account, but it also keeps the strategy simple and low cost given the fee ceiling on eligible funds. Families should treat the contribution limits as a ceiling, not a target, and factor in that employer gifts eat into the same $5,000 yearly cap that parents and relatives share.
What comes next for account holders
With six million sign ups already logged and the Dell donation program rolling out, adoption looks likely to keep climbing through the rest of this year. The real test comes later, when the first cohort of account holders reaches 18 and the accounts convert into IRA style vehicles, revealing how well this experiment in early childhood investing actually performs over time.