A mom holding her toddler child

Trump Accounts: 5 Fast Facts for Families

What Is a Trump Account? Get a Free $1,000 In Seed Money

A Trump Account (or 530A) is a free investment account for children under 18, created to give kids a financial head start. 

Children born between January 1, 2025 and December 31, 2028 may qualify for a $1,000 contribution from the federal government once their family completes enrollment. Children under 10 may also be eligible for seed money from a charitable donation.

Funds are invested in a U.S. stock market fund and can grow over time–possibly up to $6,000 by the time your kids are 18 and nearly $300,000 when they retire*. No cost or investment is required by parents to receive the $1,000.

Yes, it’s legit. It was passed by Congress in 2025. Here’s the breakdown, including how to enroll:

2. Your Child Must Have a Social Security Number

To qualify:

  • Child must be under age 18
  • Child must have a valid Social Security Number (SSN)
  • Parent or guardian can have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN)

A guardian, parent, adult sibling, grandparent, or other authorized adult may be able to open the account depending on the situation.

3. How to Open a Trump Account for Your Child: Enrollment Steps

A Trump Account is NOT automatically activated. Families must sign up.

How to enroll:

After enrolling, the U.S. Department of the Treasury will send instructions to activate the account.

Important: If more than one adult can claim the child on taxes, talk to each other first so you don’t both try to enroll. Only one family member should create the account, and only the person who will claim the child as their qualifying child for tax purposes in the following year- generally the person who financially took care of the child living with them over 50% of the year- should claim the $1000 in seed money. This can be the same person!

4. The Money Grows Until Adulthood

The account is designed for long-term savings.

Money is invested in a low-cost stock market index fund.

Children generally cannot spend the money while they are minors. At age 18 the account will automatically roll over to a traditional IRA which will continue to grow. Funds can also be withdrawn early penalty free for specific purchases by the child.

Historically, stock market investments increase over long periods of time, but investment returns are never guaranteed.

Example estimates based on historical market averages:

  • $1,000 at birth could grow to about $6,000 by age 18
  • About $15,000 by age 27
  • About $243,000 by age 55

* Important: Actual results may be higher or lower.

5. The Account Belongs to the Child

At age 18, the young adult takes control of the account.

Funds may be used for certain qualified purposes under federal rules for Individual Retirement Account (IRA) withdrawals, such as:

  • Higher education
  • A first home purchase
  • Starting a business

Important: Withdrawals are subject to some taxes and other restrictions.

Even if you already filed taxes for the year, you can claim your child’s money today!