Trump Accounts Roll Out Across the US With $1,000 Seed for Newborns

Trump Accounts, the new tax-advantaged investment accounts for American children created under the 2025 tax-and-spending law, are rolling out across the United States following their launch on July 4. The accounts function much like a traditional individual retirement account for minors, with the child as the legal owner and a parent or guardian managing the account until age 18. The federal government makes a one-time $1,000 contribution for children born from the start of 2025 through the end of 2028, once an account is opened. Beyond that seed, parents, relatives and others can contribute up to a combined $5,000 a year, with employers able to add up to $2,500 within that cap, and the government deposit and certain charitable gifts do not count toward the limit. Investments are restricted to low-cost US index funds, and withdrawals are generally barred before age 18. Families are weighing the accounts against established options such as 529 education plans and custodial accounts, each with different tax treatment and withdrawal rules. Financial advisers note that while the government seed money is a clear benefit, the accounts' long-term value will depend on contributions, investment returns and how the withdrawal rules are applied once children reach adulthood.