Trump Accounts are tax-advantaged investment accounts for kids under 18, created by the federal government. Children born between January 1, 2025 and December 31, 2028 also get a free $1,000 seed contribution from the U.S. Treasury just for opening one.
The official name is "Invest America Accounts." They were created as part of the One Big Beautiful Bill Act, signed in 2025. But most people just call them Trump Accounts.
Here's what parents actually need to know.
Why This Is a Big Deal
Most kids don't start investing until their 20s or 30s, if at all. Trump Accounts change that. A child who opens one at birth with a $1,000 government seed and $5,000/year from family could grow up to have around $191,000 by age 18 and close to $2.2 million by age 60, assuming a 6% average annual return.
That's the power of starting early. And this program makes it easy to do exactly that.
Who Qualifies
Any U.S. child under 18 with a Social Security Number can open a Trump Account.
The free $1,000 government contribution is only for children born between January 1, 2025 and December 31, 2028. But kids born before 2025 can still open an account. They just don't get the $1,000 seed. See the full eligibility breakdown here.
So even if your child is 10 or 15, it's still worth doing.
How Much Can You Put In
Up to $5,000 per year total, from any combination of family members, friends, and employers.
Employers can contribute up to $2,500/year, which counts toward that $5,000 cap. The government's $1,000 seed doesn't count against the cap, so you can still put in the full $5,000 on top of it.
There's also no earned income requirement. You don't need a job to contribute. Anyone can put money in.
Where the Money Is Invested
Trump Accounts are invested in low-cost U.S. equity index funds, like S&P 500 ETFs. The expense ratio cap is 0.10%, which is extremely low. Your money isn't sitting in a savings account getting 4%. It's invested in the stock market.
When Can Your Child Use the Money
The money stays in the account until January 1 of the year your child turns 18. After that, the account converts into a traditional IRA. From there, standard IRA rules apply.
There are a few narrow exceptions before age 18, including first home purchase, education, medical expenses, disability, and birth or adoption. But for the most part, this is long-term money.
How to Open One
There are two ways:
- File IRS Form 4547 with your 2025 tax return. The deadline is April 15, 2026.
- Use the online portal at trumpaccounts.gov, which opens in mid-2026.
A parent, grandparent, guardian, or other authorized adult can serve as custodian until the child turns 18.
If your child was born in 2025, the April 15 deadline matters. Filing Form 4547 is how you claim the $1,000 government seed. Don't miss it. Here's a full step-by-step guide to opening a Trump Account.
How Trump Accounts Are Different from 529s
A 529 plan is specifically for education costs. If your kid doesn't go to college, you're stuck with penalties or limited options.
Trump Accounts don't have that restriction. When the account converts to an IRA at 18, your child can use it for anything a traditional IRA covers. That's a meaningful difference if you're not sure what your kid's path will look like.
Both can make sense. They're not mutually exclusive. You can have a Trump Account and a 529 at the same time. They serve different purposes.
A Note on Tax Treatment
Money you contribute comes from after-tax dollars, so you don't pay tax on that portion when it's withdrawn later. Earnings on your contributions are taxed as income when withdrawn.
For the government's contributions and their earnings, those are also taxed as income on the way out. But tax-deferred growth for 18 or more years still puts most families way ahead.
This is educational context, not tax advice. For specifics, talk to a tax professional or visit IRS.gov.
Is Grifin Part of This Program?
Grifin is not affiliated with the U.S. government or the Invest America program. We're a private investing app.
What we are doing is helping families understand Trump Accounts, figure out if their child qualifies, and prepare to invest. Once financial institutions are allowed to hold Trump Account balances (after July 2026), we'll offer a rollover option. Not sure if a Trump Account is the right move for your family? This guide can help you decide.
In the meantime, Grifin lets you start building your family's investment habits now while you wait.
Find out if your child qualifies and how much they're eligible for at investamericaquiz.com. It takes about 30 seconds.
Wondering about something more specific? Here's every question 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.
