Trump Accounts for the Next Generation
Midway through last year, President Trump signed the Working Families Tax Cut legislation into law. This sweeping legislation extended the 2017 Tax Cuts and Jobs Act and delivered new tax relief for millions of hardworking Americans. Just as important, it included forward-looking, pro-family policies designed to help the next generation succeed. One of those initiatives is the creation of Trump Accounts.
Trump Accounts are designed to give families a head start when it comes to their children’s future. By allowing parents to invest early through a tax-advantaged investment account, families can begin saving for things like education, a first home, or starting a business, helping young Americans start life on stronger footing. Beyond the financial benefit, these accounts also introduce children to the basics of saving and investing at an early age. As families watch these accounts grow over time, children can begin to understand how long-term investing works and how money can compound when given time to grow. This early exposure helps build financial awareness and literacy that can benefit them well into adulthood.
Under this program, eligible American children born between January 1, 2025, and December 31, 2028, will receive a $1,000 contribution to their own account. The account is held in the child’s name, with parents serving as the sole custodians until the child turns 18. At that point, funds can be accessed for qualified expenses, helping young adults take their first major steps toward independence.
Families are not obligated to contribute additional funds. However, they have the option to do so, with the possibility of contributing up to $5,000 per year. The funds in these accounts will be invested in a variety of low-cost index funds to maximize long-term growth while keeping risks low. Whether families add to the account or not, the early investment provides a meaningful advantage to your child's future. According to data compiled by the White House (utilizing historical S&P 500 stock averages) these accounts will grow drastically if left unused. Those historical trends say that even if an individual does not contribute to their account, it will grow to $6,000 by age 18, $15,000 by age 27, and $243,00 by age 55. Trump Accounts are set to go live on July 5, 2026. Families will be able to open accounts when filing their taxes or through an online portal.
This initiative reflects a simple but powerful idea; when families are empowered to invest early, children are better prepared to pursue their goals later. Trump Accounts help give the next generation a head start on the American Dream.
For more information, please visit “trumpaccounts.gov”.