In a significant move aimed at securing the financial future of American children, US President Donald Trump unveiled a new federal initiative on Tuesday, December 2. The program, centered around newly introduced Trump Accounts, also known as 530A or Invest America Accounts, is designed to help build wealth for the next generation from the moment they are born.
What Are Trump Accounts and Who is Eligible?
Trump Accounts are tax-deferred savings and investment vehicles specifically for children under the age of 18. The accounts are structured to grow over time through market investments and will later function similarly to a traditional Individual Retirement Account (IRA) once the child becomes an adult.
The eligibility criteria are clear: the program is open to all US citizens born between January 1, 2025, and December 31, 2028, who possess a valid Social Security number. As a foundational boost, the US Treasury will provide a one-time seed contribution of $1,000 into each account. Beyond this, families, friends, and others can contribute up to $5,000 annually to help the fund grow.
Key Dates and How to Open an Account
At a White House event, President Trump released the official IRS Form 4547, which parents or guardians must use to initiate the process. This form allows them to open an initial Trump Account for a child and to elect for the $1,000 Treasury pilot program contribution if they are eligible.
The timeline for activation is crucial. Once the election is submitted, starting in May 2026, the Treasury will send out activation instructions to complete the account setup via a secure authentication process. The window for accepting contributions from families and other sources will officially open on July 4, 2026.
Massive $6.25 Billion Donation from Michael Dell
The program received a monumental, private-sector endorsement coinciding with its announcement. Michael Dell, the founder of Dell Technologies, and his wife Susan Dell, have pledged a staggering $6.25 billion to fund 25 million Trump Accounts.
This extraordinary philanthropic commitment dramatically extends the program's reach beyond the federal mandate, ensuring additional financial support for a vast number of eligible children. It stands as one of the largest private donations ever directed toward a public financial inclusion scheme.
Investment Strategy and Projected Growth
To ensure safety and steady growth, Trump Accounts are legally mandated to invest in broad US equity index funds, like those tracking the S&P 500. The rules strictly prohibit the use of leverage, and annual management fees are capped at a low 0.10%.
This conservative yet growth-oriented approach has impressive long-term potential. Financial projections suggest that if an account is fully funded and left untouched, it could grow to approximately $1.9 million by the time the child turns 28, providing a formidable foundation for financial independence.
Contribution Rules and Employer Participation
The program encourages broad participation. Contributions can be made not only by parents and guardians but also by grandparents, friends, employers, and qualifying charitable or government organizations. Withdrawals are generally prohibited before the age of 18, except in limited circumstances such as account rollovers or the beneficiary's death.
Notably, the initiative also includes a provision for employer support. Companies may offer pre-tax contributions to an employee's dependent child's Trump Account through a cafeteria plan, with an annual limit of $2,500 per employee.
The launch of Trump Accounts represents a core part of President Trump's broader vision to foster financial security and wealth-building opportunities for American families. By combining a government-backed seed investment with the potential for private contributions and disciplined market growth, the program aims to give every eligible child a meaningful head start in life.
