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.
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. Any child under 18 who has a valid Social Security number and meets federal eligibility requirements qualifies for a Trump Account.
How to Activate a Trump Account
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.
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.
Eligibility for the $1,000 Contribution
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.
Original reporting: Idaho Education News — read the source article.
