Trump Accounts, formally known as 530A accounts, commenced operations on July 4 as a tax-deferred investment vehicle designed specifically for minors. The program represents a new retirement savings option distinct from traditional education-focused savings plans, with a stated emphasis on building generational wealth across income levels.
Eligible participants include all children under age 18 who are U.S. citizens with valid Social Security numbers. Account opening can be completed by parents, legal guardians, grandparents, siblings, or relevant state welfare agencies for children in foster care. Children born between 2025 and 2028 qualify for a one-time $1,000 deposit from the Treasury Department as part of a pilot initiative. Additionally, tech entrepreneur Michael Dell and his spouse pledged $6.25 billion to provide supplemental $250 deposits for children born between 2016 and 2024 residing in lower-income ZIP codes. As of July 10, approximately 6.5 million children had been enrolled, with families contributing nearly $125 million collectively since the launch.
Contribution limits allow up to $5,000 annually per child in after-tax dollars from family members and other contributors until the year before the child’s 18th birthday, with annual adjustments for inflation beginning after 2027. Employers may contribute an additional $2,500 per worker annually. Contributions from family members do not require gift tax filing and count toward annual gift exclusion limits of $19,000 per recipient for 2026. Funds grow tax-deferred, though withdrawals before age 18 are generally restricted, with limited exceptions for certain rollovers and distributions.
Accounts are invested exclusively in S&P 500-tracking exchange-traded funds, with the State Street SPDR Portfolio S&P 500 ETF serving as the default option. Four alternative ETF options are also available to account holders. Bank of New York Mellon manages the initial accounts. Account opening occurs through IRS Form 4547 or TrumpAccounts.gov, with enrollment deadlines established as the year before the child turns 18. Treasury officials characterized the accounts as complementary to existing education-focused savings vehicles rather than competitive alternatives.
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