A new federal investment account for children officially launched on July 4, 2026, and any U.S. kid born between 2025 and 2028 can get a $1,000 deposit from the government to start it — no income requirements, no application fee.
What a Trump Account actually is
A Trump Account is essentially a starter traditional IRA for a minor, technically called a 530A account after the section of tax law that created it. A parent or guardian manages it until the child grows up, similar to how a custodial account works.
Any U.S. child under 18 with a valid Social Security number is eligible to have one opened, and there are no income restrictions — the child doesn’t even need earned income, which is normally a requirement for contributing to a traditional IRA.
The $1,000 deposit specifically
The government-funded $1,000 contribution is narrower than general eligibility for the account itself: it’s reserved for children who are U.S. citizens born between January 1, 2025, and December 31, 2028. A parent has to opt in for the child to receive it — it isn’t deposited automatically just because a child was born in that window.
How the money grows
Once funded, the account invests for the long term with tax-deferred growth. Investment options are currently limited to low-cost mutual funds or ETFs tracking broad U.S. equity indices, similar to the S&P 500 — not a menu of individual stocks or higher-risk investment choices.
Beyond the initial $1,000 government deposit, families can contribute up to $5,000 a year into the account. The money stays locked in during what the IRS calls the "growth period," which runs until the year the child turns 18. At that point, the account automatically converts into a traditional IRA on January 1 of that year.
What this means in practice
For a family that opts in at birth and contributes nothing further, the $1,000 has 18 years to grow tax-deferred before the child gains the kind of access a young adult would have to a traditional IRA — meaning still subject to the usual IRA withdrawal rules, not immediate unrestricted access to cash. For families that add the maximum $5,000 a year on top of the initial deposit, the account could grow substantially larger by the time it converts.
FAQ
Q. Do all children automatically get a Trump Account?
No. Any child under 18 with a Social Security number is eligible to have one opened, but an account has to actually be opened for them — it doesn’t happen automatically.
Q. Does every eligible child get the $1,000?
No. The $1,000 federal deposit is specifically for children born between January 1, 2025, and December 31, 2028, and requires a parent to opt in.
Q. Can the money be spent before the child turns 18?
No. The account is locked during the growth period until the child turns 18, at which point it converts into a traditional IRA, which comes with its own separate withdrawal rules.
Trump Accounts for kids launched July 4: What parents need to know