Invest America is a new federal program that creates tax-advantaged investment accounts for every eligible American child under 18. The accounts are officially called Invest America Accounts, though most people are calling them Trump Accounts. If you have kids, this is worth understanding.
The short version: the government sets up an investment account in your child's name. Kids born between 2025 and 2028 get a free $1,000 to start. You can contribute up to $5,000 a year on top of that. The money grows tax-deferred, invested in low-cost U.S. stock index funds, and your child can access it when they turn 18.
It's a pretty big deal. Here's everything you need to know.
Where Did This Come From?
Invest America was created under the One Big Beautiful Bill Act, signed in 2025. The program is managed by the U.S. Treasury. Once financial institutions are approved to hold the accounts (expected after July 2026), families will be able to roll them over to a private platform of their choosing.
The official government site is trumpaccounts.gov. For a deeper look at how the program works, here's our full breakdown of Trump Children's Investment Accounts.
Who Qualifies?
Any U.S. child under 18 with a Social Security Number can have an Invest America Account. That's the baseline. If you want a full eligibility walkthrough, we broke it down in detail here.
The extra benefit, the free $1,000 government seed, is for children born January 1, 2025 through December 31, 2028. If your child was born in that window, they're eligible for that seed contribution on top of everything else.
If your child was born before 2025, they can still open an account and benefit from the tax-deferred growth and annual contribution limits. They just don't get the $1,000 from the government.
One thing to keep in mind: the child has to be 17 or younger for the entire calendar year the account is opened.
How Much Can Go In?
Up to $5,000 per year total from all sources combined. That includes contributions from parents, grandparents, other family members, and even employers. Employer contributions are capped at $2,500 of that $5,000.
The government's $1,000 seed doesn't count toward the $5,000 cap. So in the best case, a child born in 2025 could have $6,000 in their account in year one.
There's no earned income requirement. Anyone can contribute, regardless of whether the child (or the contributor) has a job.
What Does the Money Invest In?
The accounts are invested in low-cost U.S. equity index funds or S&P 500 mutual funds. The expense ratio cap is 0.10%, which is about as cheap as it gets in the investment world.
You don't pick stocks. You don't manage the portfolio. It's designed to be set-it-and-forget-it.
When Can the Money Be Used?
No withdrawals before your child turns 18. The narrow exceptions are things like a first home purchase, medical expenses, disability, education, or birth and adoption costs.
When your child turns 18, the account converts to a traditional IRA. After that, standard IRA rules apply. Early withdrawals before age 59½ come with a 10% penalty.
If you start early and contribute consistently, the numbers get compelling fast. A child who gets the $1,000 seed and receives $5,000 a year could have around $191,000 by 18, and over $2 million by age 60 at a 6% average annual return. Those are estimates, not guarantees, but they illustrate why starting early matters. See a full breakdown of how much your child can receive.
What's the Difference Between an Invest America Account and a 529?
Good question. A 529 plan is specifically for education expenses. If you use the money for something else, you pay taxes and penalties on the earnings.
An Invest America Account has no restriction on what the money gets used for after 18. It converts to a traditional IRA, so your child can use it for anything they'd use retirement savings for. Housing, medical, general savings, retirement itself.
The two accounts aren't competing. A lot of families will end up using both. Not sure which makes more sense for your situation? Here's a practical guide to deciding if a Trump Account is right for your family.
How Do You Open One?
Two ways:
- File IRS Form 4547 with your 2025 tax return by April 15, 2026
- Use the online portal at trumpaccounts.gov, which opens in mid-2026
If you want to claim the $1,000 seed for a child born in 2025 or later, the tax return route is the way to go before the April 15 deadline. You can download IRS Form 4547 here. For a full step-by-step walkthrough, here's our complete guide to opening a Trump Account for your child.
A parent, grandparent, or other authorized adult acts as the custodian until the child turns 18.
Does Grifin Run This Program?
No. Grifin is a private investing app. We're not affiliated with the U.S. government or the Invest America program.
What Grifin does is help families understand the program and prepare for it. Once financial institutions are allowed to hold Invest America Accounts (after July 2026), Grifin plans to offer a rollover option. In the meantime, Grifin lets you start investing now in the brands where you already spend money.
Find out if your child qualifies for a $1,000+ head start at investamericaquiz.com.
Wondering about something specific? We've rounded up 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.
