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Trump Accounts creates retirement funds for babies: Here’s how it works
ByAshlie West
Thursday, July 16, 2026 10:03PM
The One, Big, Beautiful Bill created a new investment account for kids, and it’s now available. But, these new financial plans have restrictions, meaning they’re not for everyone.
On America’s birthday, President Donald Trump announced a new way for the next generation of investors to achieve the American Dream, but many people don’t know about it or haven’t signed up yet.
“I’ve heard that he wants to give money to children for college, maybe?” said Sanchita Krishna from Stamford, Connecticut.
When asked about the Trump Accounts, Megan McCarter from Greenville, South Carolina said, “My children are grown, but if I had a newborn, I would absolutely do it and be thrilled about it.”
“Yeah, I’m definitely opening an investment account for my son. Just hope the money gets in,” Vania Hoyte from Philadelphia said when asked if she would open an account for her child.
Most parents of newborns aren’t thinking about their baby’s retirement, but there’s a big, beautiful bonus if you do.
While any child under 18 may be eligible for a Trump account, children born between January 1, 2025 and December 31, 2028, who are U.S. citizens can receive a $1,000 U.S. Treasury deposit into their accounts, which have a $5,000 annual contribution cap.
“More than 6.5 million American children have been signed up for accounts so far,” said White House Press Secretary Karoline Leavitt on Thursday.
Some of the rules for the Trump Accounts include children cannot access them until their 18th birthday, withdrawals without penalties are limited to education, purchasing a home and starting a business. Otherwise, individuals can take money out penalty free once they turn 59
“We are still seeing less than half of those eligible are signed up. I think a lot of that has to do with the fact that it’s an opt-in program it’s not automatic which means that families still had to take step to actually enroll their child and then activate their account… It’s important that new programs are really including lower income and lower wealth people,” said Madeline Brown, Senior Policy Associate at the Urban Institute.
Some parents who have tried to enroll their kids have received an email stating their child is not eligible.
There are delays. Some babies with newly issued social security numbers may not qualify yet and some parents have had success after applying multiple times or applying online.
“The $1,000 seed money is free money it’s hard to argue with that,” said Sam Taube, Lead Investing Writer for Nerd Wallet.
Taube says other accounts like 529 college savings plans, custodial IRA’s, and custodial Roth IRA’s are also available to parents.
Remember. if anyone is asking you to pay money to get the $1,000 contribution from the U.S. Treasury, it’s a scam. Here is the link to the official Trump Account website.
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