President Donald Trump on Monday marked the first trading day for Trump Accounts by ringing the stock market’s opening bell and announcing that the government had deposited the first $1,000 into more than 500,000 accounts.
“Those accounts will begin to grow along with our booming economy,” Trump said in the Oval Office. “We’re giving this money to children so they can have a good life.”
Accounts opened for U.S. citizens born between 2025 and 2028 will receive a one-time $1,000 deposit from the Treasury Department.
“The American dream belongs to every child, and today we are equipping the next generation with the right to claim their rightful share of it through Trump Accounts,” Treasury Secretary Scott Bessent said at the event, adding that “6 million American children have signed up.”
What Are Trump Accounts?
Trump Accounts are tax-advantaged savings accounts that were included in the “big beautiful bill” that the president signed into law last year.
The Treasury Department called Trump Accounts “an innovative savings and investment platform designed to ensure that future generations of Americans own a stake in the American economy from day one.”
According to the IRS, Trump Accounts are “for a child who has not turned age 18 before the end of the calendar year in which the election is made and has a valid Social Security number. It features a pilot program contribution of $1,000 for children born between Jan. 1, 2025, and Dec. 31, 2028, and who are U.S. citizens with a valid Social Security number.”
Trump Accounts grow tax-deferred, and investment gains aren’t taxed until the money is withdrawn. Withdrawals are subject to income tax.
How Much Can Go Into a Trump Account?
Parents and others will be able to deposit as much as $5,000 a year into the accounts.
“Funds can be accessed without penalty when the child turns 18 for qualified expenses like education or a first home purchase,” according to the Trump Accounts website. “Withdrawals may be subject to restrictions and would be taxed at ordinary income rates.”
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How Do You Sign Up for a Trump Account?
Parents can sign up for an account through the IRS.
