Trump Accounts for Children Launch July 4 With $1,000 Government Seed

Trump Accounts, a new type of tax-advantaged investment account for American children, officially launch on July 4. Created under the 2025 tax-and-spending law and sometimes called 530A accounts, they function like a traditional individual retirement account for minors, with the child as the legal owner and a parent or guardian acting on their behalf until age 18. The federal government will make a one-time $1,000 pilot contribution for children born from the start of 2025 through the end of 2028, once an account is opened. Beyond that seed money, parents, relatives and others can contribute up to a combined $5,000 a year, with employers able to add up to $2,500 within that cap; the government seed and certain charitable gifts do not count toward the limit. Investments are restricted to low-cost US index funds, and withdrawals are generally barred before age 18. The Treasury says more than five million families have already begun signing up, with roughly 1.4 million children eligible for the seed deposit, and it has launched a dedicated app built with BNY Mellon and Robinhood to manage the accounts.