President Donald Trump’s federal savings program, known as “Trump Accounts,” will begin in July, and qualifying citizens with children born between 2025 and 2028 will qualify.
The IRA-type accounts will have a $1,000 deposit per child from the U.S. Treasury, and parents or guardians can make an annual contribution of $5,000 per account. Employer contributions can be up to $2,500 per year.
Contributions won’t begin until July, and parents or guardians can file an IRS Form 4547 in the meantime to open an account via a 2025 tax return or on trumpaccounts.gov. The $1,000 will arrive in accounts “as soon as practicable” after July 4, according to an IRS document on the Trump Accounts.
“Upon submission, your information will be securely sent directly to the IRS,” the website reads. “You'll be contacted by a trustee with whom your Trump Account will be established, with further instructions on how to complete account setup.”
Who will administer Trump accounts hasn’t been determined. Families will later be able to move an account, or accounts, to another financial service provider.
Children, who must be U.S. citizen-born and with a Social Security number, own the account, but the parents or guardians handle the account until each child reaches 18 years old. Withdrawals are generally not allowed beforehand, as is the case with IRAs, and then the account will act like a typical IRA, where the child will get penalized for withdrawing funds before age 59 1/2. According to the IRS, exceptions include buying a home for the first time, higher education, and medical costs.
Philanthropists Michael and Susan Dell helped make the Trump Accounts possible with a $6.25 billion pledge for the cause. Families in ZIP codes with a median household income under $150,000 will also receive $250 more to each child’s account.