Trump accounts give eligible U.S. children a $1,000 federal seed deposit and allow up to $5,000 per year in savings

Trump is handing out $1,000 in federal seed money to every newborn in America from 2025 through 2028, as long as parents open a government-approved account tied to the stock market.

In 2022, just 58% of American households held stocks or bonds, but the wealthiest 1% owned nearly half the total value of those assets. The Trump Account is designed to break that pattern. Apparently.

According to the White House’s multiple fact sheets, parents who follow the steps can eventually unlock up to $5,000 a year for their child through a mix of federal support, tax-free contributions, and third-party donations.

Here’s how it works: if your kid is born between January 1, 2025, and December 31, 2028, and has a Social Security number, they qualify. Parents, no matter their immigration status, can open one of these “Trump Accounts,” but they won’t be able to deposit funds until July 2026.

How Trump Accounts work

Once a Trump account is open, the $1,000 goes straight into the U.S. equity markets, to be managed by approved private banks or brokerages and invested in low-fee index funds.

The managers of these accounts reportedly can’t charge more than 0.10% annually, and the money is locked until the child turns 18. Withdrawals are limited to college tuition, business startup, or first home down payment. If you’re hoping to use it for groceries or rent, forget it.

Parents can also put in $2,500 a year from their pretax income, just like with a 401(k). That’s not the cap, though. Employers, friends, extended family, cities, and nonprofits can also pitch in, with contributions that don’t count against the $5,000 yearly limit. So if a local government or foundation throws in extra support, that’s on top of the $5K.

If your kid was born before 2025, there’s a small consolation. Michael Dell and his wife, Susan Dell, just announced a $250 donation for kids aged 10 or younger who live in areas with a median family income below $150,000. But the catch is that this only applies if the child doesn’t get the $1,000 from the Treasury. Parents still need to open the account themselves. No account, no Dell cash.

Meanwhile, registration isn’t fully live yet, as the IRS Form 4547, needed to enroll, hasn’t dropped online, but pre-registration will start in May 2025, and by July 2026, parents can begin making deposits.

According to the Trump White House, they want kids from low-income families to have the same investing exposure as wealthier families give their kids through trust funds.

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