One of the lesser known provisions of US President Donald Trump’s tax legislation is Trump Accounts, which is a tax-deferred savings account for children under the age of 18. The creation of these accounts was included as part of Trump’s spending bill signed in July. The bill gives $1,000 to every newborn, so long as their parents open an account.
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On Tuesday, tech billionaire Michael Dell and his wife Susan pledged to pour in $6.25 billion into individual investment accounts for 25 million children under the age of 10. During a press briefing focused on the $6.25 billion donation, Trump said, “Trump accounts will be the first real trust funds for every American child, allowing family members, employers, corporations, and generous donors to contribute money that will be invested and grow.”
Here’s what you need to know about Trump Accounts and how to claim them:
- 01
What is a Trump Account
The Trump Account is a new savings tool for children under 18 where the money gets invested in the stock market on behalf of the child. The money can’t be accessed by the child until they turn 18 and it can only be used for specific purposes like paying tuition fee, starting a business or making a down payment on a home.
The accounts are designed to grow with investment earnings over time and private banks and brokerages have been roped in to manage the money, which would be invested in US equity index funds that track the stock market and charge the accounts no more than 0.10% in annual fees, AP reported.
- 02
Who is eligible for a Trump account?
Anyone with a social security number and under the age of 18 can open the Trump Account. The Trump Account will go live on July 4, 2026. Parents and guardians are responsible for setting up and managing the accounts.
- 03
How do I open a Trump Account for my kids?
The accounts can open from July 2026, however, parents of eligible kids can sign up for Trump Account by filling out Form 4547 from the Internal Revenue Service.
By May next year, parents who sign up now to open the account will be notified about how to finish opening the Trump Account. The White House has said that in the beginning of July, it will have a website where parents can register for the accounts.
- 04
Who gets $1,000
There are certain conditions to be eligible for the $1,000 contribution from the US government. The baby must be a US citizen and must have a social security number. The baby must be born between January 1, 2025, and December 31, 2028. Any parent can open the Trump Account for their qualifying child regardless of the parent’s immigration status.
