A new federal investment program known as Trump Accounts is now available, giving eligible families a new way to invest for their children’s future. The accounts officially launched on July 4 as part of the Working Families Tax Cutsinitiative and are designed to help children begin building long-term wealth through stock market investments at an early age.
Parents, legal guardians, and other authorized custodians can open an account for children who are under 18 years oldand have a valid Social Security number. As part of a pilot program, eligible U.S. citizen children born between January 1, 2025, and December 31, 2028 may receive a $1,000 government-funded contribution to jump-start their account. Families can also contribute up to $5,000 annually, while participating employers and approved organizations may make additional contributions. The funds are invested in diversified stock market investments and managed through approved financial institutions.
To enroll, parents must log into their IRS account using ID.me and submit IRS Form 4547, providing their child’s Social Security number, birth date, and address. The process typically takes only a few minutes, and parents remain custodians of the account until the child turns 18. Supporters say the program is intended to expand long-term investing opportunities for American families, while financial experts encourage parents to understand the investment rules and eligibility requirements before opening an account.
(Photo by Mandel NGAN / AFP via Getty Images)
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