Trump Accounts are tax-advantaged investment accounts for children under 18, created by the federal government. Any U.S. child with a Social Security Number can have one. And if your child was born between 2025 and 2028, the government deposits a free $1,000 to get things started.
Here's how they work, who qualifies, and what to expect when the program launches.
What Is a Trump Account?
Officially, they're called Invest America Accounts. But most people call them Trump Accounts, after the administration that created them through the One Big Beautiful Bill Act.
The basic idea: the government opens an investment account in your child's name, seeds it with $1,000 (for eligible kids), and families can contribute up to $5,000/year on top of that. The money grows tax-deferred and invests exclusively in low-cost S&P 500 or U.S. equity index funds.
Your child can't touch it until they turn 18. At that point, it converts to a traditional IRA and can be used for almost anything.
Who Qualifies?
Any U.S. child under 18 with a valid Social Security Number can open a Trump Account. There's no income limit. No minimum contribution required.
The one thing that does vary is the $1,000 seed:
- Born January 1, 2025 – December 31, 2028: Eligible for the free $1,000 government contribution
- Born before 2025 or after 2028: Can still open an account and contribute, but doesn't receive the seed money
For a full breakdown of who qualifies and for how much, check out Trump Children's Investment Accounts: How Much Your Child Can Receive.
So if you have a 10-year-old and a newborn, both can have Trump Accounts. The newborn gets the $1,000 head start. The 10-year-old doesn't, but still gets a tax-advantaged account to build wealth in.
Not sure which category your child falls into? Take the 30-second quiz at investamericaquiz.com to find out exactly what they qualify for.
How Much Can You Put In?
Up to $5,000 per year, total from all sources. That includes contributions from parents, grandparents, family friends, and employers.
Employers can contribute up to $2,500/year, and that counts toward the $5,000 cap.
The government's contributions, including the $1,000 seed and any charitable additions, don't count toward the cap. So in a good year, your child could have $6,000+ going in.
What Does It Invest In?
Trump Accounts invest exclusively in low-cost U.S. equity index funds or S&P 500 funds. The expense ratio is capped at 0.10%, which is about as cheap as it gets.
You don't pick individual stocks. The whole point is passive, long-term growth.
To put some numbers on it: if you start with the $1,000 seed and add $5,000 a year, at a 6% average annual return, your child could have around $191,000 by age 18. Leave that untouched in an IRA and it could grow to over $2 million by age 60.
Obviously, past returns don't guarantee future results. But that's the general idea.
When Can Your Child Access the Money?
They can't withdraw before age 18. There are narrow exceptions for things like disability, a first home purchase, medical expenses, or higher education, but in general the money stays locked until adulthood.
At 18, the account converts to a traditional IRA. After that, standard IRA rules apply. Early withdrawals before 59½ come with a 10% penalty.
How Taxes Work
The short version:
- Contributions you make (after-tax dollars): not taxed when withdrawn
- Earnings on those contributions: taxed as income when withdrawn
- Government/employer contributions and their earnings: taxed as income when withdrawn
It's similar to a traditional IRA in that respect. You grow the money tax-deferred, and pay taxes when it comes out. If you want a side-by-side comparison with other savings vehicles, Trump Accounts vs. 529 Plans is worth a read.
How Do You Open One?
There are two ways:
- File IRS Form 4547 with your tax return
- Use the online portal at trumpaccounts.gov, available mid-2026
A parent, grandparent, guardian, or other authorized adult serves as custodian until the child turns 18.
The accounts officially become available July 5, 2026. For a full walkthrough of the process, check out How to Open a Trump Account for Your Child.
How Does Grifin Fit In?
Grifin isn't affiliated with the U.S. government or the Invest America program. We're a private investing app.
What we do: help families understand Trump Accounts, track the timeline, and prepare to make the most of them. Once financial institutions are allowed to hold these accounts after July 2026, Grifin will offer a rollover option. You can read more about what the program means for families on our Invest America overview page.
In the meantime, Grifin lets you invest in the brands your family already buys from every day. Some families use it as a way to start building their child's financial future right now, while they wait for Trump Accounts to officially launch. Not sure if a Trump Account is the right fit for your family? This decision guide can help.
Find out if your child qualifies at investamericaquiz.com
Still have questions? Here's everything people are asking about Trump Accounts.
This post is for educational purposes only and is not tax, legal, or investment advice. Grifin is not affiliated with the U.S. government or the Invest America program.
