The White House recently unveiled new information about “Trump accounts,” a savings initiative aimed at helping families build wealth for their children. The program, also known as Section 530A accounts, was created under President Donald Trump’s legislation passed in July. According to a Wednesday update on trumpaccounts.gov, the accounts will be available for families beginning in mid-2026.
The initiative has garnered support from various companies and individuals, including billionaire hedge fund manager Ray Dalio and his wife, Barbara, who have made an additional donation to help fund the savings accounts for kids. Other companies, such as BNY and BlackRock, have also announced that they will match contributions to Trump accounts for their employees to encourage early wealth-building.
Understanding Trump Accounts
Trump accounts are designed to provide a head start for children in building their savings. Any legal guardian, including parents, adult siblings, or grandparents, can open a Trump account on behalf of a child aged 18 or younger, as long as the child is a U.S. citizen. To open an account, the guardian must file IRS Form 4547, which can be filed separately or with the 2025 tax return. Beginning in mid-2026, accounts can also be opened online at trumpaccounts.gov.
Eligibility and Contributions
Children born in 2025 through 2028 may receive a one-time $1,000 contribution from the Department of the Treasury, with no income requirements or eligibility restrictions. Additionally, children 10 or under and born before January 1, 2025, may be eligible for a $250 grant from the Dell family if they live in a ZIP code with a median income of $150,000 or less. According to a CNBC analysis of U.S. Census Bureau data, approximately 3% of ZIP codes have median incomes above $150,000.
Investment Options
Trump account investments are limited to broad U.S. equity index funds, such as mutual or exchange-traded funds, with annual fees and expenses not exceeding 0.1%. The investments must track a “qualified index” and cannot use leverage. While the exact investment options are still unclear, data from Morningstar Direct suggests that about 186 mutual funds and ETFs may meet these criteria.
Growth Projections
The revamped Trump accounts website includes growth projections for three scenarios, with families contributing nothing beyond the government’s deposit or funding an additional $250 or $5,000 per year. For example, the $1,000 deposit with no additional contributions could grow to $5,800 after 18 years, based on historical S&P 500 annual averages of over 10% without inflation. However, investors should be aware that fully investing in equities comes with a certain amount of risk, and they should be comfortable seeing their balance rise and fall as markets move.
Smart Tip for Readers
When considering opening a Trump account, it’s essential to carefully review the investment options and fees associated with the account to ensure they align with your family’s financial goals and risk tolerance. By doing so, you can make informed decisions and help your child get a head start on building their savings. Read more about Trump accounts Here
