“President Donald Trump unveiled a sweeping new savings initiative for children, dubbed “Trump accounts,” a government-created investment program [scheduled to become available in mid-2026].
“The accounts function much like traditional long-term investment vehicles, but with rules specifically designed to protect young savers. Available only to those under 18, they’re funded through federal seed money, private contributions from families and, when applicable, supplemental deposits from employers or nonprofit organizations....
“A Trump account can be opened for any child under 18 years old who has a valid Social Security number. An authorized adult, typically a parent, guardian, adult sibling or grandparent, must be the one to establish the account....
“Individuals can contribute up to $5,000 per year.... Governments and nonprofits may also make eligible contributions.... Employers participating in a Trump account program may contribute up to $2,500 per year.... The Treasury will make a one-time $1,000 deposit into every eligible child’s Trump account [for children born in 2025 through 2028]....
“The government [will limit] what these accounts can hold to keep them simple, low-risk, low-fee and broadly diversified. This means, families cannot pick individual stocks, chase trendy thematic funds or invest in narrow sectors....
“The beneficiary will be allowed to withdraw funds once they reach age 18. At that point, the account begins to function much like a traditional IRA, with the same tax treatment, distribution options and early-withdrawal rules.”
– From a 12/07/2025 Fox Business article at fxn.ws/49iay7r.
