A new type of investment account championed by President Donald Trump gives kids a government-funded head start on saving for the future.
Some children receive a $1,000 federal contribution, and families can add money over time to help the accounts grow.
If you have children under 18 — and want to know whether your family qualifies or how to get started — we have you covered.
Here are some frequently asked questions, answered:
What is a Trump Account?
Trump Accounts are individual retirement accounts created for children by Trump’s One Big Beautiful Bill Act.
Money placed in the accounts is invested in an S&P 500 index account. The goal is to allow children to begin building long-term savings through market investments while they are young. Unlike a 529 account, Trump Accounts are designed as retirement accounts, not accounts specifically for education expenses.
Who qualifies for a Trump Account?
Any child under 18 who has a valid Social Security number and meets federal eligibility requirements qualifies for a Trump Account.
As a bonus, those born between Jan. 1, 2025, and Dec. 31, 2028, qualify for a $1,000 pilot contribution to the account. In some areas, Micron contributed $250 to certain Trump Accounts. Michael and Susan Dell are also contributing $250 to qualifying children’s Invest America accounts. Families can check whether their child qualifies for that contribution here.
Other organizations and donors may also contribute to eligible accounts.
How do I activate one?
Using the Trump Account app or the Internal Revenue Service website, families can fill out IRS Form 4547 to activate the accounts.
Families can track and manage their accounts through the Trump Account app. Parents or guardians will need information about the child, including their Social Security number and other identifying details, to complete the setup process.
How are they different from 529 accounts?
Trump Accounts, or 530A accounts, are retirement accounts rather than being education-focused like 529 accounts.
Once the account holder turns 18, they can use Trump Account money for a wider range of purposes than a 529 account, which provides unique tax benefits for qualified education expenses. However, because Trump Accounts follow retirement-account rules, withdrawals may have different tax implications depending on how the money is used.
Having a 529 account does not preclude a family from opening a Trump Account, nor does activating a Trump Account prevent someone from opening a 529 account. Families can use both accounts as part of a broader savings strategy.
How do I put money in?
Families can contribute money to Trump Accounts through the app. They can invest up to $5,000 per year, and anyone can contribute, including a parent’s employer.
Contributions from parents, relatives, employers or other eligible contributors can help grow the account over time. The $5,000 annual contribution limit applies to total contributions from all sources, except outside donations like the Micron contribution.
Who qualifies for the free $1,000?
Children born between Jan. 1, 2025, and Dec. 31, 2028, can receive a free $1,000 contribution from the U.S. Department of the Treasury. When parents open an account for their qualifying child, the account will receive the money after it is properly established and approved.
Is the $1,000 really free money?
The money doesn’t come directly from a private donor — it is a federal contribution funded through the U.S. Treasury. In other words, families receiving the contribution do not pay for it directly, but taxpayers fund the federal program.
When can my child withdraw money?
Once the account holder turns 18, Trump Account money can generally be used for a wider range of purposes than money in a 529 account, which is designed for qualified education expenses.
The money can be used for multiple purposes, but withdrawals may be subject to traditional individual retirement account (IRA) tax rules. Qualified uses and tax treatment depend on federal rules in place when the money is withdrawn.
