A new category of tax-advantaged savings account for American children officially launched July 4, 2026. Established by the One Big Beautiful Bill signed into law in 2025, Trump Accounts give every eligible American child a $1,000 government-funded head start in the stock market. The official source for information and enrollment is trumpaccounts.gov.
Here is what families need to know right now.
What Is a Trump Account?
Trump Accounts — formally called Money Account for Growth and Advancement (MAGA) accounts in the legislation — are tax-advantaged investment accounts created for American children by the federal government. The U.S. Treasury deposits $1,000 into each eligible child’s account, and the money is automatically invested in a low-cost S&P 500 index fund. Parents and guardians can add up to $5,000 per year in voluntary contributions on top of the government seed deposit.
The account remains in the child’s name with the parent or guardian serving as custodian. At age 18, the child takes full control and can continue letting it grow or withdraw funds for approved purposes such as education, a first home, or retirement — with tax advantages similar to a traditional IRA.
Who Is Eligible?
Trump Accounts are available to U.S. citizen children under the age of 18. The government’s $1,000 initial contribution is specifically for children born between January 1, 2025 and December 31, 2028. Children born before 2025 may still have an account opened by a parent or guardian and receive voluntary contributions, but should check current eligibility details at trumpaccounts.gov for the latest rules.
To determine your child’s eligibility and complete enrollment, visit the official government website at trumpaccounts.gov or complete IRS Form 4547, which can be filed with your annual tax return or submitted separately at form.trumpaccounts.gov.
How to Enroll
There are two ways to enroll your child in a Trump Account:
- IRS Form 4547: Complete and submit this form when you file your federal tax return, or file it separately at form.trumpaccounts.gov. This is the primary enrollment method.
- Trump Accounts App: Download the official Trump Accounts app on the Apple App Store or Google Play. Create an account and await your invitation, which Treasury is issuing on a rolling basis.
Treasury began accepting invitations at launch on July 4, 2026, with accounts being activated over the coming weeks. Once your account is active, you can view your child’s balance, manage investment selections, and make voluntary contributions through the app.
How the Money Is Invested
At launch, all contributions are automatically invested in the State Street SPDR Portfolio S&P 500 ETF (ticker: SPYM), a low-cost exchange-traded fund that tracks the S&P 500 Index. Treasury selected this fund for its broad market exposure and minimal expense ratio.
In the coming months, Treasury plans to release functionality allowing parents and guardians to choose among four additional low-cost index funds:
- iShares Core S&P 500 ETF (IVV)
- Vanguard Total Stock Market ETF (VTI)
- State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM)
- iShares Core S&P Total U.S. Stock Market ETF (ITOT)
Until investment election functionality is available, all contributions — including any voluntary deposits families make — remain in the default SPYM fund.
How Much Can a Trump Account Grow?
The compounding math is compelling. Based on historical S&P 500 averages, Treasury projects the following illustrative account values for a child receiving the $1,000 opening deposit at birth:
- Age 18 with $0 additional contributions: approximately $15,000
- Age 18 with $250 per year in contributions: approximately $51,000
- Age 18 with $5,000 per year in contributions: approximately $742,000
These are illustrations based on historical market performance and are not guaranteed. Actual results will vary. Even the base case — $1,000 growing to $15,000 with no additional contributions — represents a meaningful head start for a young adult.
How Trump Accounts Compare to 529 Plans and Other Savings Vehicles
Families already have tools for long-term savings for children. Trump Accounts complement rather than replace these existing options:
- 529 Education Savings Plans: Tax-advantaged accounts specifically for education expenses. Alabama’s CollegeCounts plan offers a state income tax deduction of up to $10,000 per year for married filers. Best choice for families focused specifically on education savings.
- UGMA/UTMA Custodial Accounts: Flexible investment accounts held in the child’s name. Subject to capital gains taxes on growth and the kiddie tax rules. No government contribution.
- Roth IRA for the Child: Only available if the child has earned income. Not an option for newborns or young children without wages.
- Trump Accounts: Government-seeded at $1,000, available from birth regardless of earned income, invested in low-cost index funds, with approved uses at age 18. The most accessible option for families who have not yet started saving.
For many families, the optimal strategy combines a Trump Account with a 529 plan and, as the child gets older, a Roth IRA. A CPA can help you structure contributions across these vehicles based on your goals and tax situation.
Corporate and Philanthropic Support
The Trump Accounts program has attracted significant private-sector support. Michael and Susan Dell committed $250 for 25 million children’s accounts through the Dell Foundation, and Ray and Barbara Dalio have also contributed. Major financial and technology firms — including BlackRock, Visa, Mastercard, Charles Schwab, Vanguard, and others — have joined as program partners. Corporations and philanthropists wishing to contribute can contact Treasury at TrumpAccountPledge@treasury.gov.
Where to Get Official Information and Enroll
The official government website for Trump Accounts is trumpaccounts.gov. This site contains current eligibility requirements, enrollment instructions, investment lineup details, FAQs for parents and children, and information for corporate participants. Because program details are still being finalized and Treasury is issuing ongoing guidance, this is the best source for up-to-date information.
How Peters Bandura CPA Can Help
New legislation always raises planning questions: How does a Trump Account affect our tax strategy? Should we prioritize voluntary contributions to the Trump Account or our 529 plan? How does this interact with our overall financial plan? At Peters Bandura CPA, we stay current on tax law changes so we can give you accurate, actionable guidance. Contact us to discuss how Trump Accounts fit into your family’s complete financial and tax picture.
The Trump Accounts program officially launched July 4, 2026 at trumpaccounts.gov. Eligible American children born January 1, 2025 through December 31, 2028 receive a $1,000 U.S. Treasury seed contribution, automatically invested in a low-cost S&P 500 ETF. Families can contribute up to $5,000 per year on top of the government deposit. Our latest post covers eligibility, enrollment via IRS Form 4547, the investment lineup, growth projections, and how Trump Accounts compare to 529 plans. www.petersbandura.com/blog #TrumpAccounts #TaxLaw #FamilyFinance #CPA