You can start contributing to a Trump Account starting July 4. Here's what to know.

Key Points:

• Americans can start contributing to Trump Accounts, or 530A accounts, on July 4, allowing parents, guardians, and others to save for children born between 2025 and 2028, who will also receive a $1,000 government seed contribution.
• Trump Accounts are designed to help children build savings by investing contributions in mutual funds or ETFs during the growth period until age 18, after which the accounts function like traditional IRAs.
• Contribution limits are set at $5,000 per child annually (excluding the government seed and charitable contributions), with employer contributions capped at $2,500 and counting toward the limit.
• Withdrawals are generally restricted until the beneficiary turns 18, with early withdrawals before age 59.5 subject to a 10% penalty unless for qualified expenses like education, home purchase, or starting a business.
• While contributions are not tax-deductible and the accounts have some restrictions, the $1,000 government contribution and support from philanthropists and corporations provide incentives, though experts suggest comparing Trump Accounts to other savings options for tax and flexibility benefits.