One year after the One Big Beautiful Bill Act was signed, Trump accounts are now live.
Investment accounts for children, administered by parents until the child turns 18, officially went live on July 4. Some children’s accounts will also receive a “seed” amount of $1,000 from the government, based on their birth year.
“Trump Accounts is about giving every American child a stake in America’s future and some of the benefits,” President Donald Trump said at the July 6 launch event. “There could be no better way to kick off our 250th year.”
Here’s what you need to know about accounts:
How do Trump accounts work?
Trump accounts are savings accounts invested in low-cost index funds, and withdrawals are generally not allowed until the child turns 18. Contributions from non-government sources are limited to $5,000 per child per year.
Anyone under the age of 18 is eligible for the account, but only children born between 2025 and 2028 will receive a $1,000 seed payment from the government. It is owned by the child but administered by the parents until the child turns 18, after which it converts to a Traditional IRA.
How do you open a Trump account?
Parents can file IRS Form 4547 online at trumpaccounts.gov. The form will ask for date of birth, Social Security number and contact information. There is also a mobile app for Trump accounts.
When will the $1,000 arrive in your Trump account?
The initial funds reached the accounts of more than 500,000 American children on July 4, Trump said.
Who actually owns the Trump account?
According to Fidelity Investments, the Trump account is owned by the child but operated by an adult until the child turns 18.
Who is eligible for a Trump account?
All US citizens born between 2025 and 2028 qualify for Trump accounts with a $1,000 benefit. They must have a Social Security number.
What about Trump accounts for children under 18?
American children under 18 born before 2025 will also be eligible for Trump accounts, with similar features but not the initial $1,000 from the federal government. Those accounts may still be eligible for other government or charitable contributions. For example, Michael and Susan Dell promised a total of $6.25 billion in $250 contributions for the first 25 million applicants for children up to age 10, with few other restrictions.
Only one Trump account can be opened per child.
When can you withdraw money?
IRS rules say you can take distributions from a Trump account on January 1 when you turn 18. According to Fidelity, withdrawals before then are highly restricted.
But the guidelines could be changed to allow withdrawals only after a child’s 18th birthday, said Rita Assaf, vice president of retirement offerings at Fidelity. Reason: A child who has not turned 18 does not have the same legal rights as an adult.
From that point on, Trump accounts can operate just like individual retirement accounts. IRA rules generally penalize withdrawals before age 59½, with exceptions for qualified first-time home purchases, higher education costs, and medical expenses. After age 59½, you can withdraw IRA funds without penalty.
Who can contribute to the Trump account?
Contributions can come from individuals, employers, governments, philanthropists and donors – almost anyone.
How much can be contributed to the Trump account?
Contributions are maximum $5,000 per year. But one-time government “seed” contributions do not count toward the annual limit, nor do contributions from governments and charities.
An employer can contribute up to $2,500 per employee per year, with the money being divided among multiple children. Employees can transfer pre-tax pay to a Trump account. Those contributions count toward the $5,000 annual limit.
Annual limits are indexed to inflation and will increase over time.
Contributing: Medora Lee, USA TODAY. Kinsey Crowley is a Trump Connect reporter for the USA TODAY Network.