Investment ‘Trump Accounts’: Who Qualifies and How You’ll Get It
Written by
John Csiszar
Edited by
Rebekah Evans
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One of the many provisions of the One Big Beautiful Bill Act (OBBBA) of 2025 was the creation of a federally-backed savings and investment program dubbed “Trump accounts.” The intent behind the accounts is to give children a head-start on investing by providing government seed money. Recently, the Trump accounts have made headlines again thanks to a major private pledge from billionaire philanthropists Michael and Susan Dell, according to CNN.
Here’s how Trump accounts work, who qualifies and how families can open one.
What Are the Trump Accounts?
Per the White House, the so-called “Trump accounts” are tax-advantaged investment accounts designed for children under the age 18. One of the factors that make these accounts unique is that the federal government will automatically deposit $1,000 into qualifying accounts when they are open. Additional deposits can then be made by others, including the employers of the child’s parents. Money in the accounts grows tax-deferred, much like with a traditional IRA.
Who Qualifies for a Trump Account?
The White House limits who can qualify for and benefit from a Trump account, as follows:
- Parents or legal guardians can open Trump accounts for any U.S. child under age 18.
- Children born between Jan. 1, 2025 and Dec. 31, 2028 qualify for the $1,000 seed money from the federal government.
- Children born before or after that time period may still have accounts, but they do not receive the deposit of federal funds.
Once opened, accounts can be funded with additional money by anyone, from parents and grandparents to other relatives, employers or even charities. Deposits, however, are subject to federal limits.
What Are the Contribution Limits and Investment Rules?
According to the White House, these are the contribution limits and investment rules of the Trump accounts:
- After the initial $1,000 government deposit, total contributions are limited to $5,000 per child per year, regardless of who contributes.
- Employers may contribute up to $2,500 annually. However, those contributions count toward the $5,000 cap.
- Regular contributions are not tax-deductible. However, employer contributions don’t count as taxable income to employees, per the Brookings Institution.
An important restriction on the Trump accounts is that they must be invested in low-cost index funds that track the S&P 500 or another American stock index, per the White House.
How Can You Open a Trump Account?
Per the IRS, Trump accounts cannot be opened until July 4, 2026. The government won’t automatically open accounts for eligible children. Rather, they must be actively opened by parents of legal guardians. However, upon opening, federal seed money will be deposited and additional contributions can be made at any time.
As with any financial account, you should expect to provide your child’s Social Security number and basic identifying information, such as date of birth and home address, to open the account. Important to note is that deposits to the account cannot be withdrawn until the child reaches age 18. At that point, ownership of the account automatically transfers to the child. At that point, standard IRA-style rules apply to withdrawals, according to the White House.
What Are the Terms of the Dell Family Donation?
On Dec. 2, 2025, Michael and Susan Dell announced they would pledge $6.25 billion to help expand the Trump accounts, per CNN. The contribution would come in the form of $250 seed contributions for up to 25 million children under age 10 who would otherwise not qualify for the $1,000 federal deposit. These deposits would allow families with children born before 2025 to still receive a starting balance in their Trump accounts.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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