USA President Trump announces automatic enrollment in Trump accounts for eligible children.

Trump Accounts are special custodial traditional IRAs for children, created under Internal Revenue Code section 530A by the 2025 One Big Beautiful Bill Act. 

They became available on July 4, 2026, and are designed for long-term, tax-deferred growth until the account converts to ordinary traditional-IRA rules.Eligibility covers any child under 18 with a valid Social Security number. 

There is no earned-income requirement. 

Treasury completed automatic enrollment around October 1, 2026, for eligible children who did not already have an account, creating accounts for more than 60 million additional children and bringing the total near 70 million. A parent or guardian must still claim the account—via the official Trump Accounts app or TrumpAccounts.gov—to manage it, accept contributions, and unlock certain deposits.The one-time $1,000 Treasury seed contribution applies only to U.S. citizen children born between January 1, 2025, and December 31, 2028. It does not count against the annual contribution limit and requires the account to be claimed. Other funding sources include:

• After-tax contributions from parents, relatives, or others.
• Employer contributions of up to $2,500 per employee per year (excluded from the employee’s income).
• “Qualified general contributions” from governments or charities, which are not subject to the annual cap.

Individual and employer contributions together are limited to $5,000 per child in 2026 (indexed for inflation later). The seed and qualified general contributions sit outside that limit.During the “growth period”—which ends on December 31 of the year the child turns 17—funds may be invested only in low-cost (fees of 0.1% or less) mutual funds or ETFs that track the S&P 500 or another index of primarily U.S. equities, without leverage or sector concentration. No distributions are generally allowed in this period, except in limited cases such as the child’s death or a rollover to an ABLE account for disability.After the growth period, the account follows standard traditional-IRA rules. 

The child gains control. 

Earnings and any pre-tax amounts (such as the seed, employer, or charitable contributions) are taxed as ordinary income when withdrawn. After-tax individual contributions form basis and are recovered tax-free. Withdrawals before age 59½ are generally subject to a 10% additional tax unless an exception applies. The accounts are intended to support long-term saving that can later be used for purposes such as education, a home, a business, or retirement.