Trump Account 2026: How to Open One for Your Child (Step-by-Step Guide)
Trump Accounts — officially called Money Accounts for Growth and Advancement (MAGA Accounts) under Section 530A of the One Big Beautiful Bill Act — open for contributions on July 4, 2026.
If you have a child born on or after January 1, 2025, here is exactly what you need to know and do before the launch date.
What Is a Trump Account?
A Trump Account is a new federally-sponsored tax-advantaged savings account for U.S. children. Key details:
- $1,000 federal seed: The U.S. government deposits $1,000 at birth for every eligible child — no application required for the seed if your child has a Social Security number
- $5,000/year family contributions: Parents, grandparents, and family members can contribute up to $5,000/year combined
- Invested automatically: Funds are invested in a broad U.S. stock market index fund
- Converts at 18: The account automatically converts to a Traditional IRA when the child turns 18 — at which point a Roth IRA conversion is often advisable
Who Qualifies for the $1,000 Seed?
Your child qualifies for the federal $1,000 deposit if they are:
- A U.S. citizen
- Born between January 1, 2025 and December 31, 2028
- Possessing a valid Social Security number
There are no income limits for the seed. A family earning $50,000/year qualifies for the same $1,000 seed as a family earning $500,000/year.
Children born before January 1, 2025, or after December 31, 2028, can still open Trump Accounts but do not receive the $1,000 federal seed.
How to Open a Trump Account for Your Child
Step 1: Ensure Your Child Has a Social Security Number
The $1,000 federal seed is deposited automatically based on SSA records. If your newborn's SSN has been issued (typically 4–6 weeks after birth via the hospital application), the seed will be credited automatically when accounts open July 4.
Step 2: Go to investamerica.org
As of July 4, 2026, Trump Accounts are live. The official federal portal for 530A accounts is investamerica.org (also accessible via irs.gov/trumpaccounts). You can open the account and request the $1,000 federal contribution in one place.
Two institutions are currently approved to hold 530A accounts:
- BNY (Bank of New York Mellon) — institutional-grade custodian
- Robinhood — retail-friendly interface, good for families making regular contributions
At investamerica.org you can:
- Open your child's account and select your preferred provider (BNY or Robinhood)
- Verify or claim the $1,000 federal seed for eligible children
- Set up family contributions (up to $5,000/year combined from all sources)
- Choose contribution frequency (monthly, quarterly, or annual lump sum)
Important: Do not confuse TrumpAccounts.gov (children's accounts, launching July 4, 2026) with TrumpIRA.gov — a separate federal program for adult workers without employer retirement plans, launching January 1, 2027. These are two entirely different programs. See the full breakdown: TrumpIRA vs Trump Accounts: Two Very Different Programs.
Step 3: Designate Your Annual Contribution Amount
Decide how much you will contribute beyond the $1,000 seed:
| Annual Contribution | Balance at Age 18 (7% return) | Balance at Age 30 |
|---|---|---|
| $0 (seed only) | $3,380 | $7,230 |
| $1,000/year | $41,450 | $88,630 |
| $2,500/year | $106,500 | $227,900 |
| $5,000/year (maximum) | $171,700 | $367,100 |
Even $100/month ($1,200/year) grows to approximately $50,000 by age 18. Use the Trump Account Calculator to model your exact scenario.
Step 4: Consider the Roth IRA Conversion at Age 18
When your child turns 18, the Trump Account converts to a Traditional IRA. If they are in a low income tax bracket (most 18-year-olds are), converting to a Roth IRA at that point is usually the right move. A $171,700 Roth conversion at 18 at a 12% marginal rate costs roughly $20,600 in taxes — but produces an estimated $367,000–$1,000,000+ in completely tax-free wealth by the time they reach retirement age.
The Growth Math: Why Starting Now Matters
Time is the most powerful variable in the Trump Account equation. A dollar contributed in July 2026 for a newborn compounds for 18 years to reach the IRA conversion date — vs. a dollar contributed in 2030 compounds for only 14 years.
For parents pursuing Family FIRE, the Trump Account changes the education cost calculation in your FIRE budget. If $5,000/year in Trump Account contributions grows to $171,000 by age 18, a significant portion of 4-year college costs is already funded — removing that expense from your required FIRE portfolio.
The full FIRE strategy for using Trump Accounts across generations: Trump Account FIRE Strategy: How to Give Your Child a $1M+ Head Start.
Quick Reference: Trump Account Facts
| Feature | Detail |
|---|---|
| Launch date | July 4, 2026 |
| Federal seed | $1,000 (automatic for eligible children) |
| Eligibility window | Born Jan 1, 2025 – Dec 31, 2028 |
| Annual family contribution limit | $5,000/year (all sources combined) |
| Employer contribution portion | Up to $2,500/year (pre-tax) |
| Investment | Broad U.S. stock market index fund |
| Age at conversion | 18 (converts to Traditional IRA) |
| Income limits | None for $1,000 seed or contributions |
| Legislation | Section 530A, One Big Beautiful Bill Act (OBBBA) |
Next Steps — Accounts Are Now Open
- Go to investamerica.org — the official federal portal is live as of July 4, 2026
- Select your provider: BNY or Robinhood (both are approved; BNY is institutional-grade, Robinhood is more user-friendly for families)
- Claim the $1,000 seed for children born Jan 1, 2025 – Dec 31, 2028 — no income limits
- Set your annual contribution amount — even $1,200/year ($100/month) grows to ~$50,000 by age 18
- Model the growth: Trump Account Calculator
- See the family FIRE math: Family FIRE: How Much Does Financial Independence Cost With Kids?
Disclaimer: This article is for educational purposes only and does not constitute financial, tax, or investment advice. Trump Account rules are based on enacted legislation (One Big Beautiful Bill Act, Section 530A) as of June 2026 and may be subject to ongoing regulatory guidance from the Department of Treasury. Consult a fee-only fiduciary financial advisor for personalized guidance.