What Are Trump Accounts? A Simple Guide
- Author: Alicia Cole
- Posted: 2026-05-19
Trump Accounts are a new type of savings and investment account created for children. They were established through the One Big Beautiful Bill Act, which became law on July 4, 2025.
These accounts help families save money for their children's future.
Who Can Get a Trump Account?
Any child under 18 who has a Social Security number can have a Trump Account. There are no income requirements, which means families receiving government assistance like SNAP can open one too.
The $1,000 Government Deposit
One of the biggest benefits is a one-time $1,000 deposit from the federal government. Here's what you need to know:
- Only babies born between 2025 and 2028 qualify for this deposit
- Each eligible child gets their own $1,000
- The money will be deposited after accounts officially launch on July 4, 2026
- Families can still open accounts for children born before 2025, but they won't receive this deposit
How These Accounts Work
Who Manages the Account?
A parent or guardian opens and manages the account until the child turns 18. At that point, the child takes full control, and the account becomes a traditional IRA (Individual Retirement Account).
Who Can Add Money?
- Parents and guardians
- Grandparents and other family members
- Employers
- Nonprofits and charitable donors
Contribution Limits
- Total yearly limit: $5,000
- Employers can contribute up to $2,500 of that amount
- These limits will increase with inflation starting in 2028
Tax Benefits
- Money in the account grows without being taxed
- When the child eventually withdraws money, they pay taxes on any earnings
How the Money Is Invested
The money in Trump Accounts is automatically invested in low-cost funds that track the overall U.S. stock market, like the S&P 500. Parents cannot choose individual stocks or other investment types.
Fees
- No fees to open or manage the account
- A small annual fee (no more than 0.1% per year) is charged
When Can Money Be Withdrawn?
- Before age 18: No withdrawals allowed—no exceptions, even for emergencies
- After age 18: The child can withdraw money for any reason
- Standard tax rules apply to withdrawals, and there may be a 10% penalty for withdrawing before age 59½
- Some exceptions allow penalty-free withdrawals, such as buying a first home or paying for college
Extra Contributions from Donors
Several wealthy individuals and organizations have pledged to add money to children's accounts:
| Donor | Amount | Who Qualifies |
|---|---|---|
| Michael and Susan Dell | $250 per child | Children ages 2-10 in ZIP codes with median incomes below $150,000 |
| Ray and Barbara Dalio | $250 per child | Children ages 2-10 in Connecticut ZIP codes with median incomes below $150,000 |
| Brad Gerstner / Altimeter Capital | $250 per child | Children under 5 in Indiana |
Some employers are also offering to match contributions for their employees' children.
Will This Affect SNAP Benefits?
Generally, no. Since the money cannot be accessed until the child turns 18, it should not count toward SNAP's income or asset limits. However, rules may vary by state, so check with your local SNAP office if you're unsure.
How to Sign Up
- Visit trumpaccounts.gov to enroll your child
- Starting in May 2026, you'll receive instructions from the Treasury Department to complete the process
- Accounts officially launch on July 4, 2026
- If your child qualifies for the $1,000 deposit, it will be added automatically
Who Manages These Accounts?
The U.S. Treasury partnered with two companies to run the program:
- BNY (Bank of New York Mellon) manages the accounts
- Robinhood serves as the brokerage
Parents can view account balances and track performance through a dedicated Trump Accounts app.
Important Note for Undocumented Parents
The child must have a valid Social Security number to open an account. Parents must provide either a Social Security number or an Individual Taxpayer Identification Number (ITIN).
Because immigration policies are changing, undocumented parents with concerns should speak with an immigration attorney or tax professional before signing up.
Key Takeaways
- Trump Accounts help families save for their children's future
- The government offers a $1,000 deposit for babies born between 2025 and 2028
- Anyone can open an account for a child under 18 with a Social Security number
- Money grows tax-free until withdrawn
- Withdrawals cannot happen until the child turns 18
- Sign up now at trumpaccounts.gov; accounts launch July 4, 2026
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