Trump Accounts open with 6.5 million children enrolled, Treasury says

Trump Accounts launched on July 4 as a new tax-deferred investment account for children, and 6.5 million minors had been signed up by July 10, according to the U.S. Treasury. Families had added almost $125 million in contributions since launch, a Treasury spokeswoman told CNBC.

The accounts, also known as 530A accounts, are structured as a child-focused form of individual retirement account. They are intended for long-term savings rather than near-term education costs, and contributions are invested in stock market exchange-traded funds chosen from a Treasury-approved list.

Who can open and receive an account

Eligibility extends to children under 18 who are U.S. citizens and have a valid Social Security number. An authorized adult, including a parent, guardian, grandparent or sibling, may open the account for the child. Treasury guidance also allows a state, territorial or tribal child welfare agency that serves as legal guardian to open an account for an eligible child in foster care.

Families can enroll through IRS Form 4547 with a tax return or through TrumpAccounts.gov. The enrollment deadline is the year before the child reaches 18, according to CNBC.

How the deposits and contributions work

Children born from 2025 through 2028 qualify for a one-time $1,000 federal deposit from the Treasury under a pilot program. The money is deposited after an account has been opened and verified, and families can track activity through the Trump Accounts app, which CNBC reported was developed in partnership with Robinhood.

Michael Dell and Susan Dell have separately committed $6.25 billion to provide $250 for children born from 2016 through 2024 who live in ZIP codes with median income of $150,000 or less. A Dell Foundation fact sheet cited by CNBC said children older than 10 may also receive funds if money remains after initial sign-ups.

Parents, guardians, grandparents and others may together contribute as much as $5,000 per child each year in after-tax dollars until the year before the beneficiary turns 18. The limit is scheduled to adjust for inflation after 2027. Employers may contribute up to $2,500 per worker annually, within the same $5,000 cap, and the IRS says those employer contributions will not count as taxable income. Qualified charities and state and local governments may contribute outside the $5,000 limit.

Tax treatment and withdrawals

The IRS and Treasury say family contributions do not create a gift-tax filing requirement, though they count toward the annual gift-tax exclusion, which is $19,000 per recipient for 2026. Account balances grow tax-deferred. Because the accounts can contain after-tax family contributions, pretax federal or employer contributions and investment gains, withdrawals may be partly taxable. Treasury said withdrawn earnings are taxed as ordinary income.

Withdrawals generally are not available before age 18, subject to limited IRS exceptions such as certain rollovers, death distributions and excess contributions. After the beneficiary turns 18, traditional IRA rules apply. Early withdrawals before age 59½ generally face income tax and a 10% penalty, though IRS rules include exceptions for uses such as higher education expenses or a first-home purchase.

Investment options and account security

Treasury said the default investment at launch is the State Street SPDR Portfolio S&P 500 ETF. Other options include iShares Core S&P 500 ETF, Vanguard Total Stock Market ETF, State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF and iShares Core S&P Total U.S. Stock Market ETF. Bank of New York Mellon will manage the initial accounts, according to Treasury.

Treasury guidance says initial activation emails will come only from [email protected], with later communications through the app or addresses ending in @trumpaccount.com. The department advises families to use the official app or type TrumpAccounts.gov directly into a browser.

This story draws on original reporting from CNBC.