Trump Accounts Launch: Federal Savings Vehicle for Children

Trump Accounts, created by the One Big Beautiful Bill Act passed in 2025, are IRA-style custodial accounts for U.S. children under 18. Children born Jan 1 2025–Dec 31 2028 receive a $1,000 federal seed deposit; all others may open accounts without seed money.

Forbes

The program is championed by President Donald Trump and Treasury Secretary Scott Bessent. Major contributors include Michael and Susan Dell, Ray Dalio, Robinhood, and the Bank of New York Mellon.

The Guardian

Family, friends and others can contribute up to $5,000 per child annually in after-tax dollars; employers may add $2,500 per employee, counting toward the cap. By law, investments must be low-cost U.S. stock index funds, defaulting to SPDR S&P 500 ETF (SPYM, 0.02 %). Additional options—IVV, VTI, SPTM, ITOT—will become selectable in coming months.

CNN

As of early June, >6 million accounts exist; ~1.5 million qualify for the $1,000 seed. 84 entities pledged contributions, and the Dells pledged $6.25 billion for $250 seeds.

Forbes

Treasury Secretary Scott Bessent said the program expands opportunity, noting the app “delivers a simple, secure way for households to begin engaging…”. President Trump called it “transformative”.

Newsweek

Urban Institute’s Madeline Brown warned the accounts favor wealthier families; 9i Capital’s Kevin Thompson said impact is limited to the $1,000 seed; advisers note 529 plans may be superior.

Newsweek

Eligibility numbers vary (1.4 M vs 1.5 M). Federal guidance on how withdrawals affect Pell Grants or SSI remains pending.

CNN

• “one of the most transformative policy innovations of all time.” — President Donald Trump, summit statement

Trump Accounts start July 4: What parents need to know

• “The Trump Accounts app delivers a simple, secure way for households to begin engaging with a program designed to build long-term financial strength from day one,” said Treasury Secretary Scott Bessent in a statement.” — Scott Bessent, Treasury Secretary

Newsweek

• “About a third of families don’t have $2,000 in emergency savings, so it’s no surprise that they don’t have the means to go start saving in [other plans] for their children,” — Madeline Brown, senior policy associate, Urban Institute

CNN

• “I don't see these accounts moving the needle the way they were intended. Most beneficiaries will likely receive the initial $1,000 contribution and nothing more,” — Kevin Thompson, CEO, 9i Capital Group

Newsweek

• “And, if we're strategic about how we convert the Traditional IRA [formerly a Trump Account] when the child reaches age 18 there will be no tax on the Roth conversion,” — Mat Sorensen, founder and CEO, Directed IRA & Directed Trust Company

USA Today

• “Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors—whether pension funds, institutions or individuals—who employ high-fee managers,” — Warren Buffett, Berkshire Hathaway shareholder

Fortune Magazine

Treasury will add fund-selection functionality, adjust limits for inflation after 2027, and issue benefit-eligibility guidance later this year.

Fortune Magazine