President Donald Trump’s administration is set to roll out the Trump Accounts program on Saturday, linking the 250th anniversary of the signing of the Declaration of Independence with an initiative aimed at encouraging long-term financial security for American children.
The accounts are scheduled to begin accepting deposits on July 4, the same day the Treasury Department is expected to deposit the government-funded bonus.
What is Trump Account?
, formally known as 530A accounts, are a new type of investment account for children established under Trump’s “
The initiative introduces a new savings account that allows funds to be invested in the stock market for the benefit of a child. The money remains inaccessible until the child turns 18 and can only be withdrawn for approved purposes, including higher education expenses, launching a business or making a down payment on a home. Families can already register for the programme through trumpaccounts.gov.
Once a parent or legal guardian opens an account, the Department will deposit $1,000 for eligible newborns. The accounts will be administered by private banks and brokerage firms, with investments restricted to US equity index funds that mirror the broader stock market and charge annual management fees of no more than 0.10%, according to AP.
Parents may contribute up to $2,500 each year in pre-tax income, similar to retirement savings plans. Additional contributions can also be made by employers, relatives, friends, local governments and charitable organisations. Total annual deposits are capped at $5,000, although contributions from government entities and nonprofit organisations are excluded from that limit.
Who qualifies for the $1,000 bonus and how the accounts work
As the programme gets underway, families with older children are also being encouraged to open Trump Accounts, although they will not be eligible for the government’s $1,000 contribution. The one-time payment is available only for children born during the current Trump administration’s term in office.
To receive the $1,000 government deposit, a child must be a US citizen, possess a valid Social Security number and have been born between January 1, 2025, and December 31, 2028. A qualifying child’s account can be opened by any parent, irrespective of the parent’s immigration status.
The funds are intended as a long-term investment and generally cannot be accessed until the child reaches the age of 18, except under limited circumstances. As a result, the accounts are not designed to cover immediate financial needs. Any money withdrawn from the accounts will also be subject to applicable taxes.
Trump Account form
Parents and legal guardians can now open Trump Accounts by submitting IRS Form 4547 along with their tax return or by registering through TrumpAccounts.gov.
After the account is created, families are encouraged to download the Trump Accounts mobile app to activate it and monitor contributions, balances and other account activity over time.
How can families beaware of scams?
The US Treasury Department has advised that all official communications regarding Trump Accounts will be sent by email from no-reply@trumpaccounts.treasury.gov. “If you receive a call or text about a Trump Account, do not respond, it is likely a scam,” the department warned.
Treasury also recommends that families access their child’s Trump Account only through the official Trump Accounts app or by entering TrumpAccounts.gov directly into their web browser to avoid fraudulent websites.
