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Americans can begin contributing to a Trump Account on July 4, when the new tax-deferred investment accounts officially launch.
Starting Saturday, parents, guardians, employers and other contributors can deposit money into a child’s Trump Account, also known as a 530A account. Children born between Jan. 1, 2025, and Dec. 31, 2028, who open an account will also receive a $1,000 Treasury Department contribution invested in the stock market.
Created under last year’s One Big Beautiful Bill Act, Trump Accounts are designed to help children under 18 build savings, similar to how adults use individual retirement accounts to save for retirement.
“These accounts are in the lane of helping children start to accumulate retirement assets from as early as possible,” Emerson Sprick, the director of retirement and labor policy at the Bipartisan Policy Center, a Washington, D.C.-based think tank, told CBS News.
U.S. Treasury Secretary Bessent has touted the accounts as a “rainy day fund” kids can use when they reach adulthood. Six million people have signed up so far, according to a Treasury Department spokesperson.
How do Trump Accounts work?
Trump Accounts are designed to help children start investing. During the “growth period” — between when the account is created and the year the beneficiary reaches age 18 — contributions must be invested in mutual funds or exchange-traded funds, or ETFs, that track large indexes such as the S&P 500 and have fees or expenses higher than 0.1%. After that time period, the account will operate like a traditional IRA.
Bank of New York Mellon will initially administer Trump Accounts in partnership with online brokerage firm Robinhood. However, the accounts can be rolled over to a Trump Account at another financial institution for the same beneficiary during the “growth period,” according to the Bipartisan Policy Center.
Parents can set up the savings vehicle through the Trump Accounts app or at the website trumpaccount.com. According to the Trump administration, funds deposited into the accounts will be invested in a broad stock-market index. The Trump Accounts app will provide an overview of the portfolio and its performance.
What are the contribution limits?
Excluding the $1,000 government contribution and any charitable contributions, people can deposit up to $5,000 per child into a Trump Account each year. Employer contributions are capped at $2,500 a year and count toward the $5,000 limit.
Some donors and employers have already pledged financial support for Trump Account holders. In December 2025, philanthropists Michael and Susan Dell said they would donate $250 to each of 25 million American children. The money will go to children born before 2025 who are under 10 and who don’t qualify for the government’s $1,000 seed contribution.
Dell Technologies, founded by Michael Dell, as well as other large companies such as Bank of America, JPMorgan Chase and chipmaker Micron Technology, have also committed to matching the government’s $1,000 contribution.
When can the money be withdrawn?
Except in limited circumstances, funds generally can’t be withdrawn before the beneficiary turns 18. Once they reach that age, children can keep the money in the account or withdraw it to use for qualified expenses, such as education, buying a home or starting a business.
However, if beneficiaries tap their Trump Account funds before age 59.5 for an unqualified reason, they will incur a 10% early withdrawal penalty, as with traditional IRAs, according to Sprick. Tax considerations are another issue to keep in mind. Contributions from individuals, including parents, guardians and family members, are not tax-deductible — unlike contributions to some other types of accounts, like 401(k)s.
“The person making those contributions receives no tax benefits from those contributions because the tax benefit is realized down the road by the account beneficiary,” Sprick said.
Along those lines, parents may want to consider how Trump Accounts compare to other savings vehicles, which may be more preferable from a tax perspective, Sprick said. Other account types may also come with fewer restrictions than Trump Accounts, which have contribution caps and more limited investment tax advantages, according to experts.
“There are all kinds of accounts that folks can use, whether it’s a 529 [plan] or just a savings account at their local credit union,” Sprick said. For those who do open a Trump Account, the biggest benefit will come from the $1,000 government contribution, he added.
If they haven’t already, parents and guardians can still sign up for a Trump Account for their child by completing and submitting IRS Form 4547, provided the child is under 18 and has a valid Social Security number.
