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An Opportunity to Invest in Your Child: Understanding Trump Accounts

Building Long-Term Financial Security for Millions of Children: Tax-Advantaged Investment Accounts Coming in 2026

Beginning in 2026, a new and innovative program known as Trump Accounts will launch with the goal of building long-term financial security for millions of children across the United States. This initiative creates tax-advantaged investment accounts available to all U.S. citizens under the age of 18, helping young people build wealth and move toward a more financially stable future, regardless of background or socioeconomic status.

What Are Trump Accounts?

Trump Accounts are tax-advantaged investment accounts designed to encourage long-term saving and investing for children. While all children under 18 are eligible to have an account, the accounts are not automatically created. Instead, a parent or guardian must actively choose to open one through the IRS beginning in mid-2026. 
A key feature of these accounts is their tax advantage. Earnings from investments, such as dividends, interest, or capital gains, can grow tax-free or be taxed at a reduced rate when withdrawn, allowing money to compound more efficiently over time.

The purpose of Trump Accounts is to give children, particularly those from lower-income households, access to wealth-building tools that are often out of reach. Funds can later be used for major life milestones such as higher education, buying a home, or starting a business. 

How Will the Accounts Work?

Eligibility and Government Seed Contribution
All U.S. citizen children under the age of 18 are eligible for a Trump Account. However, a one-time $1,000 government seed contribution is planned only for children born between January 1, 2025, and December 31, 2028. 
  • Children outside this birth window may still open an account but will not receive the government seed contribution. 
  • Additional contributions may be made by individuals, parents, employers, or charitable organizations.

Opening an Account (Election Process) 
Opening a Trump Account requires taking one of the following steps: 
  • Filing IRS Form 4547, or 
  • Using the upcoming online tool at trumpaccounts.gov 

The process to open an account is scheduled to begin in mid-2026, with accounts becoming available on July 5, 2026. Once the process is completed, the U.S. Treasury will provide instructions on how to activate and fund the account. 
  • Tax Benefits 
    Similar to 529 plans or Roth IRAs, Trump Accounts offer tax-advantaged growth. Investments are not taxed while they grow, allowing for long-term compounding that can significantly increase the account’s value over time. 
  • Investment Options 
    Funds may be invested in a range of long-term assets, including low-cost index funds, stocks, bonds, and other diversified investment options. The government may provide default investment selections to limit excessive risk, especially for younger children, while still allowing flexibility as the account holder ages. 
  • Accessing the Funds 
    Funds are restricted while the account holder is a minor. Once adulthood is reached, the individual can access the money for approved purposes such as education, homeownership, or entrepreneurial ventures. 
  • Account Management 
    Trump Accounts will be administered through a federally supported system. While families do not need to establish the account infrastructure themselves, they must complete the election process through the IRS to activate the account. 

Why Is This Important?

Trump Accounts represent a significant step toward addressing long-term wealth inequality in the United States. Children from higher-income families often benefit from early access to savings, investments, and financial education. This program helps level the playing field by ensuring every child has an opportunity to benefit from long-term investing and compounding growth.

By providing access to these accounts, and seed funding for many children, the program lays out a financial foundation that can follow individuals throughout their lives, supporting economic mobility and generational stability. 

Want to Learn More?

Direct information about the upcoming Trump Accounts program, including eligibility, elections, and timelines, is available at: 
https://trumpaccounts.gov 

Fidelity also offers a detailed guide explaining Trump Accounts, including benefits, contribution options, and long-term planning considerations: 
https://www.fidelity.com/learning-center/personal-finance/trump-accounts