Introduction

In 2026, a new type of tax-advantaged investment account for children called Invest America Accounts (commonly known as Trump Accounts) becomes available for U.S. families. These accounts are designed to help parents and guardians start investing early for their child’s future financial security. This guide explains how the program works, who qualifies, contribution limits, tax treatment, comparisons with traditional college savings vehicles, and how families can use Grifin to make the most of these opportunities.

What Are Trump Children’s Investment Accounts?

Invest America Accounts are tax-advantaged investment accounts created by federal law to help families build long-term savings for children under age 18. The federal government seeds each eligible account with $1,000, and families can make additional contributions up to annual limits. Accounts are intended to grow over time in diversified investments until the child becomes an adult.

These accounts are set to launch on July 5, 2026, and will be available through financial institutions that participate in the program.

Who Is Eligible?

Eligibility for Trump Accounts is straightforward:

• A child must be a U.S. citizen with a valid Social Security number.
• Children under age 18 can have an account established on their behalf.
• Children born between January 1, 2025, and December 31, 2028 receive a $1,000 government seed contribution into their Trump Account once an election is made.
• Children born before 2025 or after 2028 may still have an Invest America Account established, but those accounts may not receive the original $1,000 government deposit.

A parent, guardian, grandparent, or other authorized adult typically opens the account, serving as custodian until the child turns 18.

How the Program Works Step by Step

This section walks you through what families need to do to open and manage a Trump Account.

Step 1. Enroll by Filing a Tax Election

To establish a Trump Account and receive the $1,000 federal deposit for eligible children, a parent or guardian must make an election when filing tax returns. This is done via a new IRS Form 4547 or through the trumpaccounts.gov portal once available.

Step 2. Financial Institution Activation

After the election is made, the Treasury directs the selected financial institution to open the account and activate it using the provided details.

Step 3. Growth and Contributions

Once open, the account will begin with the $1,000 seed contribution (if eligible). Parents and other contributors can add funds once contribution rules take effect.

The account stays invested over time, with optional contributions added to accelerate growth.

Contribution Rules and Limits

Understanding the contribution rules is key to maximizing long-term growth:

• Annual contribution limit: Up to $5,000 per year total from all persons (parents, relatives, friends).
• Employer contributions: Employers can contribute up to $2,500 per year toward an employee’s or their dependent’s Invest America Account; this counts toward the $5,000 total.
• Government contributions do not count against the annual limit.
• Contributions may begin after July 4, 2026 once the program is live.

Here is a simple summary:

Taxes and Withdrawals

Trump Accounts grow tax-deferred. Earnings are not taxed each year but may be subject to tax when withdrawn after age 18. Once the child reaches adulthood, the account generally follows the rules of a traditional individual retirement account, including tax treatment and distribution guidelines.

Withdrawals before age 18 are generally restricted, similar to retirement accounts, with exceptions only for certain qualified expenses in some cases.

How Trump Accounts Compare With Other Options

Parents considering these accounts often compare them with other savings vehicles. Here’s a quick look:

Versus 529 College Savings Plans

• 529 plans offer tax-free withdrawals for qualified education expenses; Invest America Accounts do not inherently provide this tax treatment.
• Trump Accounts allow contributions from a broader range of sources, including employers.
• Trump Accounts focus on long-term growth similar to retirement accounts.

Versus Custodial Accounts (UGMA/UTMA)

• UGMA/UTMAs allow broader investment choices and withdrawals for any benefit of the child, but lack tax-advantaged growth.
• Invest America Accounts offer tax-deferred growth but generally restrict access until adulthood.

Versus Traditional IRAs

• Trump Accounts transition into traditional IRA treatment at age 18, at which point earnings may be taxed upon distribution.
• Contributions to Trump Accounts are made after tax (similar to non-deductible IRA contributions), but the tax treatment on withdrawal mirrors traditional IRAs.

Each structure serves different planning goals; families should weigh tax treatment, flexibility, and long-term objectives.

Potential Growth Scenarios

To illustrate how these accounts can grow over time, consider this hypothetical example based on historical U.S. stock market returns:

• No additional contributions: A child might see modest growth from the $1,000 seed deposit alone.
• Moderate contributions annually: Adding consistent annual contributions can dramatically increase the ending balance by age 18.
• Maximum contributions annually: Fully funding the $5,000 limit each year can result in significant growth due to compounding returns.

While results depend on markets and choices, starting early provides a powerful time advantage.

Benefits for Families

Invest America Accounts can offer several benefits:

• Early savings boost with a government seed contribution.
• Potential tax-advantaged growth through diversified investment.
• Encourages long-term investment habits and financial literacy.

Parents can also involve children in tracking their account growth, helping them learn about finance.

Considerations and Drawbacks

Families should consider:

• Access to funds is generally restricted until age 18.
• Tax-deferred status means taxes may apply at distribution.
• Program details and IRS regulations are still evolving, and guidance may change before full implementation.

Comparing with established savings vehicles like 529 plans or Roth IRAs can help determine which best fits a family’s goals.

How to Make the Most of Your Trump Account With Grifin

Grifin can help families build a stronger financial foundation:

• Track contributions and growth over time easily within one platform.
• Plan annual contributions that align with your long-term goals.
• Compare with other savings accounts like 529 plans to understand tradeoffs.
• Set reminders and alerts for contribution deadlines and IRS form changes.

Explore how Grifin can support strategic investing for your children by visiting our signup page and learning how you can manage long-term investing efficiently.

Conclusion

Trump children’s investment accounts present a new opportunity for families to start long-term investing early. Understanding eligibility, contributions, tax treatment, and how they compare to other savings options helps parents make informed financial decisions. For families looking to build wealth systematically for their children’s futures, these accounts may be a powerful tool when paired with thoughtful planning through Grifin.

Frequently Asked Questions

What is an Invest America Account? A tax-advantaged investment account for children under 18 that receives a government seed deposit and allows additional contributions.

Who qualifies for the $1,000 deposit? Children born between January 1, 2025, and December 31, 2028.

How do I open an account?Parents or guardians must make an election via IRS Form 4547 when filing taxes or through the official portal when available.

When can I contribute? Contributions may begin after the program launch in mid-2026.

Can I withdraw funds early? Generally no; Trump Accounts are designed for long-term growth until age 18.