Tax-advantaged Trump Accounts open for contributions starting today, July 4, 2026, marking the official launch of a new federal savings vehicle designed to give eligible children a head start on long-term wealth building. Parents, relatives, employers, and others can now begin funding these accounts, which have already drawn registrations from more than 6 million children nationwide.
Each Trump Account is established as a type of traditional IRA for children under 18 with a valid Social Security number. Eligible children born between January 1, 2025, and December 31, 2028, receive a one-time $1,000 contribution from the federal government as a seed deposit. Families and other contributors can add up to $5,000 per year to the account until the child turns 18, according to TurboTax and the IRS.
The accounts are invested in a diversified U.S. stock index fund, and investment growth is tax-deferred, meaning account holders won’t owe taxes on earnings while the funds remain in the account. Contributions themselves are not tax-deductible, but the tax deferral on investment returns is the primary tax advantage. According to the Bipartisan Policy Center, investment returns compound without being taxed in the year they’re earned, allowing balances to grow faster over the long term.
Trump Accounts were created under the One Big Beautiful Bill, a 2025 reconciliation law enacted on July 4, 2025. The accounts are administered by the U.S. Treasury Department and the IRS. More than 6 million children have been registered for accounts as of early July, with approximately 1 million to 1.5 million eligible for the pilot program’s $1,000 federal seed contribution, according to the IRS and NBC News.
The accounts differ from other child savings vehicles in key ways. Unlike 529 education savings plans, which offer tax-free growth and withdrawals for qualified education expenses, Trump Accounts can be used for any purpose once the child reaches 18 and taxation applies to earnings upon withdrawal. However, Trump Accounts allow contributions regardless of the child’s earned income, enabling families to begin saving from birth—a feature that 529 plans and Roth IRAs do not permit, according to CNN.
The Treasury Department announced the official launch today, stating that families can manage their Trump Accounts through a dedicated app. Parents interested in opening an account can file IRS Form 4547 to elect their child into the program.
Sources
- IRS — confirmed 4 million children signed up, $1,000 pilot program contribution, and July 4, 2026 contribution start date
- U.S. Department of the Treasury — announced official launch of Trump Accounts on July 4, 2026
- Congress.gov — provided overview of Trump Accounts policy, contribution mechanics, and eligibility
- NBC News — reported 6 million+ children registered, 1.4 million eligible for pilot contribution
- TurboTax — confirmed $5,000 annual contribution limit for 2026
- Bipartisan Policy Center — explained tax-deferral mechanism and investment compounding
- CNN — compared Trump Accounts to 529 plans regarding contribution flexibility
- Britannica — confirmed funds invested in diversified U.S. stock index fund
