More than 1.5 million children have been enrolled in Trump Accounts since the investment program launched earlier this month, the U.S. Treasury reported last week.
The program, which debuted in July, allows parents and legal guardians to open government-supported investment accounts aimed at helping American children accumulate wealth.
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Under the program’s guidelines, U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028, are eligible for a $1,000 seed deposit from the federal government.
For children born before Jan. 1, 2025, the Michael and Susan Dell Foundation has committed $6.25 billion to deposit a $250 charitable gift into the accounts of up to 25 million children aged 10 or younger who live in qualifying ZIP codes.
Additionally, more than 50 companies have pledged to offer Trump Account contributions for the children of their employees.
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Guide to Trump Accounts
What are Trump Accounts?
Trump Accounts are investment accounts where funds are invested under regulatory guidelines during a “growth period,” which lasts until Dec. 31 of the year the child turns 17.
Beneficiaries generally cannot withdraw money from the accounts before turning 18. For children born in 2025, withdrawals would begin around 2043. If money is not withdrawn, the account transitions to function more like a traditional Individual Retirement Account (IRA).
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Eligibility and Documentation
Any child under the age of 18 who has a valid Social Security number may be eligible. Children whose immigration status changes can apply once they receive a new Social Security card reflecting that change.
According to the IRS, accounts can be opened by authorized individuals, including legal guardians, parents, adult siblings, and grandparents.
Authorized account founders do not need to be U.S. citizens or hold a Social Security number to open an account for an eligible child. They may use an IRS Individual Taxpayer Identification Number (ITIN) during the application process.
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Contribution Limits and Rules
Family and Friends: Parents, family, and friends can choose to contribute a combined total of up to $5,000 per year. This limit will be indexed to inflation after 2027.
Employers: Up to $2,500 annually can be contributed by a parent’s employer, subject to certain restrictions. Dozens of employers have committed to contributing on behalf of workers’ children.
Government Seed Money: The $1,000 federal contribution provided to children born between Jan. 1, 2025, and Dec. 31, 2028, does not count toward the $5,000 annual limit.
Nonprofits and Local Governments: Nonprofits and government entities face no contribution caps. However, an analysis by the Bipartisan Policy Center notes that these entities must distribute equal amounts to all Trump Accounts within a specific geographic location or birth year to prevent targeted demographic structuring.
Philanthropic Pledges
The Michael & Susan Dell Foundation is contributing $250 to children aged 10 and under in qualifying ZIP codes, and Micron is placing a $250 million investment to provide $250 deposits to children under 18 in states where the semiconductor manufacturer operates: California, Colorado, Idaho, Minnesota, New York, Texas, and Virginia.
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Registration and Deadlines
There is no deadline to enroll an eligible child before they turn 18. Parents and guardians can register children online via the IRS website at http://irs.gov/trumpaccounts or by filing Form 4547 with their taxes.
Once registered, accounts can be managed at http://trumpaccounts.gov/ or the official Trump Accounts mobile application.
Pennsylvania’s Existing Program
The PA 529 College and Career Savings Program is similar and already exists. Like Trump Accounts, family members contribute post-tax dollars. However, 529 plans allow for tax-free withdrawals and stipulate that the funds must be used exclusively for educational purposes. The Keystone Scholars Program automatically provides a $100 scholarship to all children born to Pennsylvania residents in 2019 or later, designated specifically for post-high school training and educational expenses. More information on the state-level programs can be found at https://pa529.com.
