In a significant gathering today, President Donald J. Trump, alongside prominent lawmakers and philanthropists Michael and Susan Dell, commemorated a remarkable achievement for Trump Accounts: a groundbreaking $6.25 billion charitable pledge from the Dells. Trump Accounts represent a novel savings initiative birthed from President Trump’s pivotal Working Families Tax Cuts Act.
This substantial donation—one of the largest direct investment in American families to date—will significantly advance President Trump’s mission to provide every newborn with a financial head start, paving the way toward lifelong stability and the quintessential American Dream.
Key Takeaways:
- Trump Accounts will be accessible to every U.S. citizen born between January 1, 2025, and December 31, 2028. These forward-thinking, tax-advantaged savings accounts—crafted through the Working Families Tax Cuts Act—are designed to empower a new generation of American youth to start their financial journeys right from birth.
- Each Trump Account will kick off with a one-time $1,000 government seed contribution. Families and other contributors can add up to $5,000 annually; these investments will be placed in a broad stock-market index, remaining under guardian control until the child reaches 18. If fully funded and untouched, these accounts could potentially grow to an impressive $1.9 million by the time the child turns 28.
- Thanks to the Dells’ groundbreaking donation, the first 25 million American children age 10 and under from households in ZIP codes with median incomes below $150,000 will receive an additional $250. This extraordinary act of generosity aims to bolster the financial prospects of millions of low- and middle-income children, enhancing their chances of attaining the American Dream.
For further details, visit trumpaccounts.gov.
Frequently Asked Questions:
- What is a Trump Account?
A Trump Account is a tax-deferred savings account intended for children under 18. These accounts are structured to appreciate with investment earnings over time, transitioning to function similarly to a traditional IRA once the child becomes an adult. - Who is eligible?
Any child under 18 with a valid Social Security number is eligible to open a Trump Account. Parents or guardians must establish and manage the account until the child reaches 18. - What is the $1,000 government contribution?
For children born between 2025 and 2028 who possess a valid Social Security number, a one-time $1,000 contribution by the Treasury can be made to the child’s Trump Account. This initial contribution does not count against the annual $5,000 contribution limit. This benefit is available provided the account is opened before the child turns 18. - Do Trump Accounts protect taxpayer dollars from waste, fraud, and abuse?
Trump Accounts are equipped with stringent safeguards to protect taxpayer funds, including the requirement for a valid Social Security number and limiting the $1,000 pilot contribution strictly to U.S. citizens born within the designated years, ensuring only eligible American children benefit. - Who can contribute to a Trump Account?
Contributions can be made by the child, parents or guardians, grandparents, family members, friends, and employers (with the first $2,500 per employee per year excluded from the employee’s income). Additionally, qualifying charitable organizations and government entities can contribute for all children in a “qualified class” (e.g., all children born in a year, all children in a state, etc.). - How much can be contributed each year?
The annual contribution cap is set at $5,000 per child, with potential cost-of-living adjustments post-2027. Qualifying charitable organizations and government entities may make extra contributions outside the $5,000 limit. - When do contributions begin?
Contributions to Trump Accounts will commence on July 4, 2026. - How are Trump Accounts invested?
By law, Trump Accounts can only be invested in broad U.S. equity index funds that mirror the overall U.S. stock market (e.g., S&P 500), avoiding leverage and capping annual fees at no more than 0.10%. - Can money be withdrawn before age 18?
No. Funds cannot be accessed before the child turns 18, except for a complete rollover to a Trump Account with another brokerage (trustee-to-trustee transfer), certain rollovers to an ABLE account in the year the child turns 17, or distribution upon death. After age 18, standard IRA withdrawal rules apply. - What happens when the child turns 18?
Upon reaching 18, the account transitions to function like a traditional IRA. The account holder may continue to contribute subject to IRA rules and income requirements. Withdrawals will adhere to traditional IRA regulations, including a potential 10% additional tax on withdrawals before age 59 ½, unless exceptions apply. - How do I open a Trump Account for my child?
To establish an initial Trump Account for an eligible child, complete IRS Form 4547. This form also allows for the $1,000 pilot program contribution from the U.S. Treasury. Following the election, beginning in May 2026, the Treasury or its agent will provide information to authenticate and finalize the account opening. - When can I open a Trump Account for my child?
IRS Form 4547 can be submitted at any time, even concurrently with the electing individual’s 2025 income tax return. From mid-2026, these elections can also be made through an online portal at trumpaccounts.gov. - Where will the Trump Account be held? Can I use my preferred brokerage firm?
Initially, all Trump Accounts will be created and held with the Treasury’s designated financial agent. Later, parents or guardians will have the option to transfer the full balance to their preferred brokerage firm via a simple trustee-to-trustee rollover. - Can my employer offer Trump Account contributions through a cafeteria plan?
Absolutely. Pre-tax salary-reduction contributions will be permitted for Trump Accounts owned by an employee’s dependent child through an employer-sponsored cafeteria plan, up to $2,500 per employee per year.
