Trump Accounts are a new child savings and investment account that parents or guardians can open for an eligible child under 18. The basic idea is simple: the government may seed certain newborn accounts with $1,000, and then families can add money that gets invested for long-term growth.

How it works

  1. A parent or other authorized adult signs in to an IRS account and submits the election form for the child.
  1. The child must be under 18 at the end of the calendar year in which the election is made, and must have a valid Social Security number.
  1. For children born between Jan. 1, 2025, and Dec. 31, 2028, and who are U.S. citizens with a valid Social Security number, the account can receive a $1,000 government contribution.
  1. Additional money can then be contributed by parents, employers, nonprofits, and possibly other authorized sources, subject to program rules.
  1. The money is invested, so the point is long-term growth rather than quick spending.

What parents need

You generally need:

  • An ID.me or IRS account.
  • Your child’s Social Security number.
  • Your child’s date of birth and address.

The IRS says the setup process should take about 5 to 10 minutes.

Key limits

These accounts are designed for kids, not adults, and the child has to be eligible when the election is made. Reporting from major financial outlets says the account is treated as a tax-deferred investment vehicle for children, with the money aimed at building a future nest egg. Some outlets also note annual contribution caps and rules on when withdrawals can happen, but those details can vary by source and program guidance.

Simple example

If a child qualifies for the $1,000 starter deposit and it stays invested for years, the balance may grow over time instead of sitting in cash. In plain English, it works a lot like a long-term kid-focused investment account with an automatic head start from the government for eligible newborns.

Practical takeaway

If you’re asking “how does it work?” in one line: an eligible adult opens the account for a child, the government may put in the initial $1,000 for qualifying newborns, and then the account grows through investment contributions over time.