The Trump administration is rolling out a new tax-advantaged savings account, called “Trump Accounts,” to help American kids get ahead. Certain newborns are eligible for an initial $1,000 deposit from the federal government, but there are several other avenues to build up the account. The program received a major boost on Tuesday because of a private donation. The program was signed into law this summer as part of President Donald Trump’s “One Big Beautiful Bill.””Trump Accounts” are available to any child under 18 who is a U.S. citizen with a valid Social Security number. However, only children born between Jan. 1, 2025, and Dec. 31, 2028, are eligible for the one-time $1,000 contribution from the U.S. Treasury Department. Children, parents, family members, friends, and employers can make additional contributions totalling up to $5,000 annually. Those contributions must be invested in a broad stock-market index. Will McBride, chief economist at the Tax Foundation, said states and charitable organizations can also add to these accounts with no annual limit.Billionaires Michael and Susan Dell pledged $6.25 billion on Tuesday to provide 25 million American children with $250 each. Kids ages 10 and under living in ZIP codes with median incomes below $150,000 are eligible. “Michael and Susan Dell are committing to one of the largest private donations in American history, which will directly benefit the next generation of American children through new Trump Accounts,” Trump said at the announcement. The money cannot be withdrawn from the account until a child turns 18. After that, it can be used to pay for higher education or a first-time home purchase, or be treated as a standard retirement account. McBride said Americans should think twice before contributing additional money. He said the account has limited tax benefits and more restrictions than other savings options that are already available to families. “The free money aspect is a no-brainer. Sign up, follow the guidance that’s issued over the next few months to figure out how to access it, but the decision about whether or not to contribute additional amounts is one that’s a little more dicey, and one you should think about in the context of other account options,” McBride said. McBride said now is a good time for families to educate themselves about those options. Contributions to Trump Accounts will be accepted starting July 4, 2026, according to a White House fact sheet released Tuesday. The fact sheet says parents should use IRS Form 4547 to establish an initial Trump Account and to make an election for the $1,000 contribution from the U.S. Treasury if their child is eligible. In May 2026, the administration is expected to send out additional information about how to activate the account. “IRS Form 4547 can be filed at any time, including at the same time as the electing individual’s 2025 income tax return is filed,” the fact sheet continued. “Beginning mid-2026, these elections can also be made through an online account at trumpaccounts.gov.” For more coverage from the Washington News Bureau:

WASHINGTON —

The Trump administration is rolling out a new tax-advantaged savings account, called “Trump Accounts,” to help American kids get ahead.

Certain newborns are eligible for an initial $1,000 deposit from the federal government, but there are several other avenues to build up the account. The program received a major boost on Tuesday because of a private donation.

The program was signed into law this summer as part of President Donald Trump’s “One Big Beautiful Bill.”

“Trump Accounts” are available to any child under 18 who is a U.S. citizen with a valid Social Security number. However, only children born between Jan. 1, 2025, and Dec. 31, 2028, are eligible for the one-time $1,000 contribution from the U.S. Treasury Department.

Children, parents, family members, friends, and employers can make additional contributions totalling up to $5,000 annually. Those contributions must be invested in a broad stock-market index.

Will McBride, chief economist at the Tax Foundation, said states and charitable organizations can also add to these accounts with no annual limit.

Billionaires Michael and Susan Dell pledged $6.25 billion on Tuesday to provide 25 million American children with $250 each. Kids ages 10 and under living in ZIP codes with median incomes below $150,000 are eligible.

“Michael and Susan Dell are committing to one of the largest private donations in American history, which will directly benefit the next generation of American children through new Trump Accounts,” Trump said at the announcement.

The money cannot be withdrawn from the account until a child turns 18. After that, it can be used to pay for higher education or a first-time home purchase, or be treated as a standard retirement account.

McBride said Americans should think twice before contributing additional money. He said the account has limited tax benefits and more restrictions than other savings options that are already available to families.

“The free money aspect is a no-brainer. Sign up, follow the guidance that’s issued over the next few months to figure out how to access it, but the decision about whether or not to contribute additional amounts is one that’s a little more dicey, and one you should think about in the context of other account options,” McBride said.

McBride said now is a good time for families to educate themselves about those options. Contributions to Trump Accounts will be accepted starting July 4, 2026, according to a White House fact sheet released Tuesday.

The fact sheet says parents should use IRS Form 4547 to establish an initial Trump Account and to make an election for the $1,000 contribution from the U.S. Treasury if their child is eligible. In May 2026, the administration is expected to send out additional information about how to activate the account.

“IRS Form 4547 can be filed at any time, including at the same time as the electing individual’s 2025 income tax return is filed,” the fact sheet continued. “Beginning mid-2026, these elections can also be made through an online account at trumpaccounts.gov.”

For more coverage from the Washington News Bureau: