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Trump Accounts start July 4: What parents need to know
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Key Points:
- The Trump Accounts program launched on July 4, providing a $1,000 deposit from the Treasury for each child born in the U.S. between January 1, 2025, and December 31, 2028, to promote early investment in the American Dream.
- Parents and guardians can open accounts via IRS Form 4547 when filing taxes, with family, friends, corporations, and philanthropies able to contribute tax-deductible amounts annually, supported by pledges from major companies and philanthropists like Michael Dell.
- Funds in Trump Accounts will be invested primarily in a broad market index fund, offering tax advantages similar to a traditional IRA, and can only be accessed by the child after turning 18 for specific uses such as education, home buying, or starting a business.
- Children born before 2025 can open Trump Accounts but will not receive the initial $1,000 federal deposit, and all accounts can be managed via an official app or website.
- The program is part of President Trump's signature tax and spending legislation, which he described as a transformative policy innovation aimed at giving children a financial head start.
