Trump Accounts for Children Launch on July 4 With $1,000 Government Seed

A new type of tax-advantaged investment account for American children, known as Trump Accounts, went live on July 4. Created under the 2025 tax law and sometimes called 530A accounts, they operate much like a traditional individual retirement account for minors, with the child as the legal owner and a parent or guardian managing the account until age 18. The federal government is making a one-time $1,000 contribution for children born from the start of 2025 through the end of 2028, once an account is opened. Beyond that seed money, parents, relatives and others can contribute up to a combined $5,000 a year, with employers able to add up to $2,500 within that cap, and the government deposit and certain charitable gifts do not count toward the limit. Investments are restricted to low-cost US index funds, and withdrawals are generally barred before age 18. The Treasury says more than five million families have already begun signing up, with roughly 1.4 million children eligible for the seed deposit, and it has rolled out a dedicated app built with a major custodian bank and a retail brokerage to manage the accounts. Financial advisers suggest families weigh the accounts against 529 college-savings plans, which carry different tax and withdrawal rules.