A new type of savings and investment account for kids–called Trump Accounts–is being rolled out in 2026 that could give American families a way to help their children build real savings over time.
What Are Trump Accounts?
Trump Accounts are a new, tax-advantaged investment account for children under age 18 that were created by a federal law passed in 2025. For kids born between January 1, 2025, and December 31, 2028, the U.S. Treasury will automatically put $1,000 into a Trump Account on their behalf once parents make an election on their tax return using a special IRS form (Form 4547).
The money in these accounts is invested in a low-cost, diversified index fund designed to grow over many years. Parents, relatives, employers, and friends can also contribute up to $5,000 per year to the account, with up to $2,500 of that coming from employer contributions that won’t count as taxable income.
Why It Might Be Worth Signing Up Now
The real power of Trump Accounts comes from compound growth over time. Even a relatively small initial investment–like the government’s $1,000–can grow significantly if left invested for many years. Analysts estimate that, at historical stock-market returns, a Trump Account could grow to tens or even hundreds of thousands of dollars by the time a child reaches adulthood.
For families already thinking about long-term goals like paying for college, helping a child buy a first home, or giving them a financial head start as adults, these accounts offer a built-in boost just for signing up. By making the election on your next tax filing, you ensure your eligible child gets their account started early, which can make a big difference decades from now.
Bottom Line: Trump Accounts aren’t a quick cash benefit today—but for many families, they’re a simple way to get free starter money and a tax-friendly savings vehicle that grows over time.
As always, each tax situation is unique, so be sure to consult with your tax professional about how this information could benefit you and your family. We are always happy to answer your questions as well.
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