What you need to know about Trump Accounts

During his State of the Union address Tuesday night, President Donald Trump promoted Trump Accounts — new savings accounts for children, which are set to launch this summer.

Babies born from 2025 to 2028 will get a huge perk: The federal government will put $1,000 in their accounts. Major companies are also pledging contributions.

“This is something that’s so special, has taken off and gone through the roof,” Trump said in his speech. “These young people’s accounts could grow to over $100,000 or more by the time they turn 18.”

Trump administration officials say millions of kids are signed up already. Treasury Secretary Scott Bessent said last week that families have applied for around 3 million kids.

What are Trump Accounts?

Trump Accounts are tax-advantaged investment accounts for children under 18. Babies born from Jan. 1, 2025, to Dec. 31, 2028, will get $1,000 from the Treasury Department to kick-start their accounts. Only U.S. citizens are eligible.

The program was created under Trump’s One, Big, Beautiful Bill Act, which was signed into law on July 4.

The government said the money will be invested in a suite of low-cost index funds. It said that just the $1,000 deposit could grow to an estimated half a million dollars or more by retirement age.

Who can contribute?

Parents, guardians, friends and companies can all add money to a child’s Trump Account. Kids can receive up to $5,000 per year — a limit that will adjust for inflation starting after 2027. A maximum of $2,500 can come from employers every year.

A growing number of companies, including JPMorgan Chase, Intel and Steak ‘n Shake, have promised to contribute an additional $1,000 for employees’ children born from 2025 to 2028 to match the government’s contribution.

Billionaire philanthropists Michael and Susan Dell also pledged $6.25 billion to supplement the Trump Accounts. The White House said that because of the Dells’ gift, 25 million children ages 10 and under will get an extra $250 apiece. Only children who live in ZIP codes with median household incomes under $150,000 are eligible for the additional money.

And billionaires Ray and Barbara Dalio said they would give $250 apiece to 300,000 kids under 10 in Connecticut — with the same ZIP code income restriction.

How can funds be used?

The money cannot be withdrawn from Trump Accounts until account holders reach 18 years old. At that point, children will get control of their accounts, and they can start using the money for certain expenses like education and first home purchases or to start businesses, without incurring penalties.

The White House says the accounts will be treated like traditional IRAs once the young account holders are adults.

How do I apply for my child?

Parents can begin the process of opening Trump Accounts for their kids by filing IRS Form 4547 with their tax returns or on the official Trump Accounts website: trumpaccounts.gov. The White House said parents and guardians who signed up their children will receive information beginning in May to finish opening the accounts. The program launches July 5.